A RESEARCH PROJECT REPORT ON

The Importance of Hr Learning And Development Activities For

Small And Medium Enterprises

In partial fulfilment of the requirements for the award of the degree of

Masters of Business Administration (MBA)

Submitted By
ARPITA BHARDWAJ
2001060700045

Submitted To
Mr. Atish Khadse
Associate Professor

SCHOOL OF MANAGEMENT SCIENCES, VARANASI

Affiliated To

Dr. A.P.J. Abdul Kalam Technical University Uttar Pradesh, Lucknow)

 DECLARATION
To the best of my knowledge, the material contained in this Research Project Report is
correct, my knowledge and the analysis is as per the norms and guidelines provided for the
project. I have utilized the requisite concepts and applied the required methodologies to
analyze the data collected to reach the conclusion present in the project.

I'm ecstatic to have finished my Research Project Report under the capable and
motivating leadership of Mr. Atish Khadse, Associate Professor. His guidance and timely
encouragement has infused courage in me to complete the work successfully.
I assert that the project is entirely original to me and has never been published before.

Arpita Bhardwaj
MBA Ⅳ Semester
2001060700045
 ACKNOWLEDGEMENT
Many have contributed to the successful completion of this research project report, I would
like to place on record my grateful thanks to each of them, and report would be incomplete
without giving the credit to them: Management of SMS Varanasi, in which the project was
taken up. Name (Institute Management), Name(Head of the Institution), name (the Head of
the Department), Dr. Amitabh Pandey ( the course coordinator).

I'm ecstatic to have finished this research project report under the capable and
motivating supervision of Mr. Atish Khadse, Associate Professor. His guidance and timely
encouragement has infused courage in me to complete the work successfully.
In the end I sincerely thank the entire respondent, friends and all others who helped
me in completion of this research project report.

Arpita Bhardwaj
MBA Ⅳ Semester
2001060700045
 PREFACE
This report has been prepared as a part of my Research Project Report, as a part of MBA,

the report is prepared with the view to, The Importance of Hr Learning And Development

Activities For Small And Medium Enterprises of the Research Project Report that I carried

out.

The initial portion is the Industry Overview of the MSME and the Company overview

about their growth, Size of the industry followed by the company overview their mission

and vision, company growth their products and size and share in the market, Company

SWOT analysis with their all-financial detailed statement. Next the second portion is

regarding the core research on the topic of the importance of Hr Learning and development

activities for MSME. That includes the introduction part, followed by the objective of the

research and research methodology.

Thus, as you go ahead the report will reveal the details of the work that I have done in my

internship project.
 TABLE OF CONTENT

S.NO PARTICULARS
1. DECLARATION

2. ACKNOWLEDGEMENT

3. PREFACE
 Section-A
INTRODUCTION
CHAPTER-1

So, The topic of my project is “The Importance of Hr Learning And Development

activities for small and medium enterprises”
The goal of this research is to investigate the impact of human resource development (HRD)
on small and medium-sized business performance (SMEs). There is a substantial body of
research that supports the link between HRD and organisational performance. The majority
of such research was carried out in industrialised countries, with a smaller amount carried out
in underdeveloped countries (countries in transit). We were able to confirm the impact of
various types of HRD investments on the performance of SMEs through our research. This
study presents empirical data that supports the impact of training and development, career
development, and employee motivation on organisational performance, but it does not
support the impact of entrepreneur education on organisational performance.
Keywords: human resource, human resource development, organizational
performance, small and medium enterprises

Firstly here I am explaining what is the importance of Hr Learning-

HR plays a critical role in ensuring a smooth training and development process. HR's
responsibilities do not end with effective employee onboarding; in fact, HR should keep a
careful eye on employees' performance throughout their careers. HR is someone who feels
that the company's most valuable asset is its people. A strong HR leader recognises
employees' potential and encourages them to make the most of their training time. A
professional HR's goal is not to fill a vacancy; rather, he or she aids employees in their
success by providing effective and efficient training programmes.
Human resource experts, without a doubt, play an important role in employee development.
Employees can effectively cooperate within the organisation if HR professionals provide
them with a suitable learning management platform.
Human resource specialists do not exclusively deal with managers and functional heads,
which is a common misperception. In fact, by designing a successful learning path for
employees, they ensure that their learning and development needs are addressed. Human
resource experts aren't always the LEADERS; they know when to back off and let the
employee take the initiative. This is one of the most significant contributors to employee
learning and development.
Human Resource Professionals' Contribution to Successful Employee Training and
Development
 Building a Personal Connect with Employees

 Organizing Ongoing Training Activities

 Motivating Employees throughout their Career

 Ensuring the Delivery of Quality Content

 Now, I am explaining what is the importance of Hr development

Human Resource Development (HRD) has faced and will continue to confront numerous
hurdles in its pursuit of boosting performance and enhancing people's capacity. The ability to
replenish and regenerate in today's global digitally connected economy is crucial. Human
potential and effort take on new dimensions. There has never been a time in human history
when There has never been a greater need to stay current and employable while also assisting
people in enhancing their quality of life. There is an ever-widening gap between those who
have the abilities and 'know how' and those who do not for those who do not receive HRD
aid. As a result, HRD plays a critical role in reducing inequality. In the workplace or in an
organisation Other challenges, in addition to bridging the gap between the haves and have-
nots, are being addressed at the national level. Competitiveness, sustainability, and social
responsibility are just a few of the issues that need to be addressed and the development of
community and consumer response.

HRD identifies what is important in life and work-

HRD professionals should make it a point to understand the business side of whatever they
do. To elevate HRD's profile from just training to one that extends imagination, human
vitality, and intellectual capacity, leadership is essential capital. It's pointless to accomplish
things in bits and pieces; HRD must be prioritised. The modern workplace and worker's
DNA.

HRD promotes constancy in valuing human beings

If HRD, or whatever name it gets, does not assume a prominent leadership role in
determining how people live and work, it may as well go into oblivion. To avoid this, HRD
must see itself in a completely different light than in the past. There should be less of them.
Emphasis on inputs, such as the type of training we are providing, to outputs, such as the
number of people who have completed the programme aided in the creation of a better life
and future. HRD values must never fall into the domain of diminishing and insulting human
creativity in a world where the worth of people's contributions is continuously quantified and
exploited. As an age-old saying goes, 'The price of gold fluctuates, but the character of gold
remains constant,' says a Buddhist proverb. 'The situation is unchanged'.

HRD Activities-

Any activity is, in truth, more than a single action. It necessitates the integration and mixing
of many thoughts, feelings, and behaviours. People will be required to put in personal, team,
organisational, and/or communal efforts as part of an activity.

Whether it is demonstrated through the establishment of a procedure, the execution of a

procedure, or the implementation of a method, commitment is essential. Whether you're
breaking new territory or relying on previous knowledge, HRD activity is varied and
extensive, encompassing a wide range of practises, initiatives, relationships, requirements,
responsibilities, and answers. The level, function, and duration of an activity might all be
different. HRD activities are designed to meet people's learning and development needs in
whichever field they work in. These actions are typically carried out by individuals, groups,
and teams. However, given society's economic and social change agendas, as well as the
growing interconnectedness of global giants like Microsoft and GE, HRD is essential,
community, regional, and worldwide viewpoints are increasingly being framed

And Here I am explaining the last introductory part which is “The impotance of Hr
learning and development activities for small and medium enterprises”

The BIG ROLE of KEY PLAYER: Human Resources Professional in Small and
Medium Enterprises –

HRM is concerned with all elements of professional employment and management in

businesses. HRM includes activities such as strategic human resource management, human
capital management, and corporate social responsibility. Human resource management is
rooted on the science of organisational behaviour and strategic management, as well as
human capital and labour relations ideas.

This database was created with the help of a significant number of study studies conducted by
various management researchers. This paper's main objective is to emphasise general facts
about HRM practise and principles. It explains HRM's goals, theories, characteristics, HRM
system components, the evolution of HRM as a way of managing people, the perspectives
stated in connection to key performers, and the framework in which HRM operates.

In today's economy, human resource management (HRM) runs parallel to a company's

success as assessed by a variety of organisational metrics (profitability, productivity, rate of
innovation, market share, environmental performances, etc.).

Small and medium-sized (SME) businesses, on the other hand, have not received much
attention in the past when it comes to HRM. The reason for this is clear: an increasing
number of authors are interested in discussing the performance of SMEs and their perceived
benefits in a chaotic and unpredictable business climate.
Paying Attention to the Functions of HRM-

As businesses expand, HR and HR functions must be correctly located. The HRM department
is considered as fully responsible for carrying out all HR functions in the best interests of
both the company and the employees. Human resource functions can be defined as the way in
which all HRM duties and responsibilities are arranged within an organisational framework.
From the hiring process to training and development to performance planning and appraisal
to remuneration and awards to final termination of employment, HR operations encompass
all roles, duties, and responsibilities.

The HR function is not the only barrier that exists between managers in general and HR
departments, but also between line management and employees. Various organisational
context elements establish the requirement for some specific HRM practises, causing the HR
function (as the primary responsibility of the HRM department) to play their ROLE in
creating an IMPACT. Any organization's HRM department is responsible for defining and
refining their HR function through a need analysis survey in order to assist business
operations and create a sustainable competitive advantage.
What’s in Hold for HRM in SMEs: Future Prospects-

Until recently, only large corporations aspired to have an HR department; however, today,
even small businesses recognise the value of HR and its functions.

Most SMEs are now aware of the necessity for established HR procedures, and they are even
prepared to adopt HRM into their businesses. The only issue they have is a lack of finances
and the competence needed to implement HRM. The solution can take one of two forms:
outsource the HRM function for a limited time or manage HRM implementation using
existing resources.

But if the firm cannot outsource HRM, the SMEs can do the following:

1.Recognize the correct talent for the task; it may not be the best, but it meets the work's and
organization's needs.

2. Employee retention can be improved by following employee engagement techniques.

3. Re-employment of retired employees who are ready to join at a low salary.

4. Creating a culture of accepting difficulties and providing opportunities for advancement

inside the organisation.

5. Reduce the hierarchy so that employees feel like they are a part of the company.

6. Work-life balance can be facilitated by employing strategies such as flexible working

 hours and working from home.

Looking at the Broader Picture:

Human resource management (HRM) is one of the most important factors of organisational
performance, according to research. The enthusiasm, competency, resources, and devotion of
the (owner) around whom the entire workforce rotates are critical to the success of SMEs.

Employee concerns are frequently taken lightly and addressed in an informal manner since
the owners are regularly involved in the manual work and accepting responsibility for
employment matters, including wage determination.

Human resources are then brought in to improve the efficiency and effectiveness of what
needs to be done correctly in an organisation.
 INDUSTRY OVERVIEW
Chapter-2

Micro, small, and medium enterprises (MSMEs) play an important role in the country's
socioeconomic growth. Due to its contribution to the country's Gross Domestic Product
(GDP) and exports, the industry has taken on substantial significance in India. In addition, the
industry has made significant contributions to the development of entrepreneurship in India's
semi-urban and rural areas.
Micro, Small and Medium Enterprises (MSME) are divided into two categories under the
Micro, Small and Medium Enterprises Development (MSMED) Act, 2006: Manufacturing
Enterprises and Service Enterprises.
SECTOR OVERVIEW
From 2019 to 2020, the number of MSMEs in India increased at a CAGR of 18.5 percent.
Loan disbursements to MSMEs totaled Rs. 9.5 trillion (US$ 128.06 billion) in FY21, up 40
percent from Rs. 6.8 trillion (US$ 91.66 billion) in FY20.

STATUTORY
BODIES
KVIC, Coir Board, NSIC, NI-MSME, and the MGIRI are the five statutory bodies that the
MSME Ministry oversees.
These organisations are in charge of assisting MSMEs with government programmes and
policies.

GOVERNMENT SCHEMES
The Special Credit Linked Capital Subsidy Scheme (SCLCSS) for the services industry was
established by the Indian government in November 2021. This programme will assist service-
oriented businesses in meeting a variety of technological requirements.
 POLICY SUPPORT
To improve the industry and enhance economic growth, the Indian government declared in
July 2021 that retail and wholesale trades will be classified as MSMEs.
MSMEs received a budget allocation of Rs. 15,700 crore (US$ 2.14 billion) in FY22, up from
Rs. 7,572 crore (US$ 1.03 billion) in FY21.

MAJOR COMPANIES UNDER THIS SECTOR:-

Following are the companies under this sector-
1. Rank 01Pixel Softek Pvt Ltd.

2. Rank 02Asian Consulting Engineers Pvt Ltd.

3. Rank 03Sensa Core Medical Instrumentation Pvt Ltd.

4. Rank 04Clairvoyant India Pvt Ltd.

5. Rank 05Rite Water Solutions (India) Pvt Ltd.

6. Rank 06Enkebee Infratech India Pvt Ltd.

7. Rank 07Minimac Systems Pvt Ltd.

SIZE OF THE INDUSTRY:-

There are roughly 6.3 crore MSMEs in India. According to data from the MSME Ministry,
the Udyam Registration platform registered 5,767,734 MSMEs as of November 26, 2021,
replacing the previous method of registering for an Udyog Aadhaar Memorandum (UAM).
Micro-enterprises accounted for 5,441,220 (94.34 percent), small businesses for 293,555
(5.09 percent), and mid-sized businesses for 32,959. (0.57 percent ). Maharashtra has the
most registrations (12.18 lakh) among the top five states for Udyam registrations as of
November 26, 2021, followed by Tamil Nadu (6.23), Gujarat (4.86), Rajasthan (4.68), and
Uttar Pradesh (4.68). (4.45).
Since July 1, 2020, the Union MSME Ministry's new online MSME/Udyam Registration
system has successfully registered over 5.7 million MSMEs through November 2021.
Through national and international trade, the Indian MSMEs sector contributes roughly 29%
to the GDP.
In one year (2021-22), the BSE SME (small and medium enterprises) platform is projected to
see >60 SMEs enter the market to raise equity financing to suit their business needs. In 2020,
16 SMEs went public through the initial public offering (IPO) route, raising Rs. 100 crore
(US$ 13.74 million). The Bombay Stock Exchange (BSE) announced in June 2021 that it has
partnered with the Electronics and Computer Software Export Promotion Council (ESC) to
raise awareness about the benefits of listing among small firms and start-ups.
Government e-Marketplace (GeM), which is owned and administered by the government and
where Ministries and PSUs (public sector undertakings) source their procurement, is
encouraging MSMEs to promote their products on the e-commerce platform. The GeM site
had served 8.16 million orders worth Rs. 159,483 crore (US$ 21.38 billion) for 55,929 buyer
organisations as of November 26, 2021, from 3.1 million registered sellers and service
providers.
Domestic businesses require a strong financial stimulus from the government and financial
institutions in the form of concessional working capital loans to ensure enough liquidity in
business operations.
MSMEs in India are quickly adopting digital payments over cash, with 72 percent of
payments made via digital vs 28 percent via cash. Digital adoption is on the rise, which bodes
well for the sector's future growth.
PRODUCT AND SERVICES:-

Products under MSME-

Currently, the Micro and Small Enterprise (MSE) sector has designated 20 goods for
manufacturing (earlier known as Small Scale sector). Annexed is a list of things that are
reserved for MSEs. Products are reserved for exclusive manufacturing by MSEs or small
scale industries with the goal of their growth and promotion, as outlined in sub-section (2C)
of Section 29B of the Industries (Development & Regulation) Act, 1951:
1. FOOD AND ALLIES INDUSTRIES
Pickles and chutneys

Bread
Mustard oil

Ground nut oil

2. WOOD AND WOOD PRODUCTS

Wooden furniture and fixtures

3. PAPER PRODUCTS
Exercise books and registers
4. OTHER CHEMICALS AND CHEMICALS PRODUCTS
Wax candles

Laundary soap

Safety matches

Fire works
Aggarbatties

5. GLASS AND CERAMICS

Glass bangles

(ⅰ) the characteristics of any article or class of articles that can be profitably produced by
supplementary, or small-scale, industrial enterprises;
(ii) the number of jobs that will be created by auxiliary, or small-scale industrial operations
producing such an object or class of articles;
(iii) the potential for promoting and disseminating entrepreneurship in the workplace;
(ⅳ) preventing economic power concentrations that harm the general public; and so on.

SERVICES PROVIDED BY MSME:-

Micro, Small, and Medium Enterprises (MSME) is an acronym for Micro, Small, and
Medium Enterprises. MSME employs over 45 percent of India's total internal industrial
workforce, making it the economic backbone of the country. In a country, there are many
different types of businesses, such as service businesses, manufacturing businesses, and
trading businesses. The government, on the other hand, has not contemplated include all
enterprises in the MSME programme.
These are some of the business and services that MSME provided-

1. Leather products.
2. Moulding – This includes products like combs, umbrella frames, plastic toys, etc
3. Natural Fragrance and Flavours.
4. Placement and Management Consultancy Services.
5. Training and Educational Institute.
6. Energy Efficient Pumps.
7. Xeroxing.
8. Beauty Parlour and crèches.
9. Auto repair services, and garages.
10. X-Ray Clinics.

MARKET SHARE OF MSME SECTOR:-

Through national and international trade, the Indian MSMEs sector contributes roughly 29%
to the GDP. In one year (2021-22), the BSE SME (small and medium enterprises) platform is
projected to see >60 SMEs enter the market to raise equity financing to suit their business
needs.

The Indian MSME sector is the backbone of the country's economy and has consistently
served as a bulwark for the Indian economy, allowing it to withstand global economic shocks
and adversity. MSMEs account for 6.11 percent of manufacturing GDP, 24.63 percent of
GDP from service activities, and 33.4 percent of India's manufacturing output, with around
63.4 million units spread across the country. They have been able to employ around 120
million people and generate approximately 45 percent of India's total exports.

The industry has continuously grown at a pace of more than 10%. About 20% of MSMEs are
located in rural areas, indicating that the MSME sector employs a considerable rural
population and demonstrating the relevance of these businesses in fostering sustainable and
inclusive development as well as creating large-scale employment, particularly in rural areas.
There are roughly 6.3 crore MSMEs in India. According to data from the MSME Ministry,
the Udyam Registration platform registered 5,767,734 MSMEs as of November 26, 2021,
replacing the previous method of registering for an Udyog Aadhaar Memorandum (UAM).
Micro-enterprises accounted for 5,441,220 (94.34 percent), small businesses for 293,555
(5.09 percent), and mid-sized businesses for 32,959. (0.57 percent ). Maharashtra has the
most registrations (12.18 lakh) among the top five states for Udyam registrations as of
November 26, 2021, followed by Tamil Nadu (6.23), Gujarat (4.86), Rajasthan (4.68), and
Uttar Pradesh (4.68). (4.45).
Since July 1, 2020, the Union MSME Ministry's new online MSME/Udyam Registration
system has successfully registered over 5.7 million MSMEs through November 2021.
Through national and international trade, the Indian MSMEs sector contributes roughly 29%
to the GDP.
In one year (2021-22), the BSE SME (small and medium enterprises) platform is projected to
see >60 SMEs enter the market to raise equity financing to suit their business needs. In 2020,
16 SMEs went public through the initial public offering (IPO) route, raising Rs. 100 crore
(US$ 13.74 million). The Bombay Stock Exchange (BSE) announced in June 2021 that it has
partnered with the Electronics and Computer Software Export Promotion Council (ESC) to
raise awareness about the benefits of listing among small firms and start-ups.
Government e-Marketplace (GeM), which is owned and administered by the government and
where Ministries and PSUs (public sector undertakings) source their procurement, is
encouraging MSMEs to promote their products on the e-commerce platform. The GeM site
had served 8.16 million orders worth Rs. 159,483 crore (US$ 21.38 billion) for 55,929 buyer
organisations as of November 26, 2021, from 3.1 million registered sellers and service
providers.
Domestic businesses require a strong financial stimulus from the government and financial
institutions in the form of concessional working capital loans to ensure enough liquidity in
business operations.
MSMEs in India are quickly adopting digital payments over cash, with 72 percent of
payments made via digital vs 28 percent via cash. Digital adoption is on the rise, which bodes
well for the sector's future growth.
 CHAPTER-3
COMPANY OVERVIEW

Here I am mentioning the major five companies which comes under the MSME sector:-
1. Rank 01Pixel Softek Pvt Ltd.

Pixel Softek Private Limited was founded on March 15, 2004, and is a private company. It is
registered with the Registrar of Companies in Bangalore as a non-government corporation. It
has a Rs. 5,000,000 authorised share capital and a Rs. 4,500,000 paid-up capital. It is
involved in software publication, consulting, and supply [Software publishing covers the
manufacture, supply, and documentation of ready-to-run (non-customized) software,
operating systems software, business & other applications software, and computer games
software for all platforms.
After examining the user's needs and challenges, consulting entails delivering the best
solution in the form of custom software. Made-to-order software is another type of custom
software that is based on user orders. Writing software of any form in response to user
commands; software maintenance, and web-page design] are all included.
The last Annual General Meeting (AGM) for Pixel Softek Private Limited was held on
November 26, 2021, and its balance statement was filed on March 31, 2021, according to
Ministry of Corporate Affairs (MCA) data.
Sandhya Vishwanath Rai and Vishwanatha Parappe Rai are the owners of Pixel Softek
Private
Limited.
2. Rank 02Asian Consulting Engineers Pvt Ltd.

Asian Consultancy Engineers Pvt. Ltd. (ACE) is a private consulting firm specialising in
water and environmental issues. ACE supports infrastructure, industrial, and social
development projects with consultancy services and long-term solutions.

The ability to engage successfully with clients to define, address, and resolve their
environmental concerns, according to ACE, is the key to success. In responding to water and
environmental concerns, ACE provides technical talent, specialised expertise, physical
resources, and necessary facilities. Each assignment that ACE takes on places a premium on
the quality of the work and the timely completion of the project.

3. Rank 03Sensa Core Medical Instrumentation Pvt Ltd.

We are India's fastest-growing in-vitro diagnostic firm, producing and supplying a wide range
of analytical and diagnostic analyzers, Point of Care Devices, Reagents, and Consumables
that meet international standards. We develop items using cutting-edge technology that are
distributed to a wide range of hospitals, pathology labs, and patients, providing the highest
levels of quality and reliability. We, on the other hand, have a robust research and
development staff dedicated to offering the finest of the best. In addition, we have a highly
skilled contract manufacturing division that designs, develops, and manufactures bespoke
products with cutting-edge technology for many of the world's leading health care and
diagnostic companies.

Sensa Core Medical Instrumentation aspires to be a world-class manufacturer of medical

diagnostic instruments. Sensa Core's aim is to provide advanced analytical and diagnostics
analyzers and hand-held devices to hospitals, pathological laboratories, OEM clients, and
patients in order to enhance patient outcomes and lower the cost of medical and health care
services.
Sensa Core will ensure that we produce high-quality products and services, as well as
ensuring that our products are user-friendly, low-maintenance, simple to operate, and
affordable.
4. Rank 04Clairvoyant India Pvt Ltd.

CLAIRVOYANT INDIA PRIVATE LIMITED is a Private Company incorporated on 27-

Nov-2014. CLAIRVOYANT INDIA PRIVATE LIMITED is a Subsidiary of a Foreign
Company that is registered with the ROC-PUNE Registrar of Companies. CLAIRVOYANT
INDIA PRIVATE LIMITED has a Rs. 450000 authorised share capital and a Rs. 405310 paid
up capital at the time of registration.

According to the company's registration, it operates under the Business Activity Class /
Subclass Code 72200. CLAIRVOYANT INDIA PRIVATE LIMITED's main activities
include software publication, consulting, and supply. [Software publishing encompasses the
creation, distribution, and documentation of ready-to-use (non-customized) software,
operating systems software, commercial and other application software, and computer game
software for all platforms. After examining the user's needs and challenges, consulting entails
delivering the best solution in the form of custom software. Made-to-order software is
another type of custom software that is based on user orders. Writing any type of software in
response to user commands; software maintenance, web-page design] are all included. It's in
the section REAL ESTATE, RENTING, AND BUSINESS ACTIVITIES, and it's in the
division COMPUTER AND RELATED ACTIVITIES.

5. Rank 05Rite Water Solutions (India) Pvt Ltd.

Rite Water Solutions (india) Private Limited was founded on September 24, 2004. It is a non-
government organisation that is registered with the Registrar of Companies in Mumbai. It has a Rs.
47,000,000 authorised share capital and a Rs. 46,052,912 paid up capital. It is employed in the
production of general-purpose machines.
Rite Water Solutions (india) Private Limited's most recent Annual General Meeting (AGM) was held
on 30 November 2021, and its most recent balance statement was filed on 31 March 2021, according
to Ministry of Corporate Affairs (MCA) records.
Ranganathan Varadarajan Dilip Kumar, Vinayak Shankarrao Gan, Abhijeet Vinayak Gan are the
directors of Rite Water Solutions (india) Private Limited.

VISION AND MISSION AND OBJECTIVES OF MSME SECTOR

Promoting e-Government for citizen empowerment, promoting inclusive and sustainable

growth of the Electronics, IT, and ITeS industries, enhancing India's role in Internet
Governance, and ensuring a secure cyber space through a multipronged approach that
includes human resource development, R&D and innovation, enhancing efficiency through
digital services, and ensuring a secure cyber space are all goals.
 Providing e-infrastructure for the delivery of e-services is what e-government is all
about.
 Promotion of electronics hardware manufacture and the IT-ITeS industry through e-
Industry.

 e-Innovation / R&D: R&D Framework Implementation - Enabling the Development

of Innovation/ R&D Infrastructure in Emerging Markets domains of
ICT&E/Establishment of R&D translation mechanisms
 Supporting the development of e-Skills and a Knowledge Network through e-
Learninge-Security: Protecting India's Internet

 Promoting the use of ICT for more inclusive growth is known as e-Inclusion.

 Internet Governance: Strengthening India's position on global Internet governance

platforms.

VISION:

To build globally competitive micro, small, and medium firms as a growth engine for
India's economy.

MISSION:

To promote the growth and development of micro, small, and medium enterprises,
such as khadi, village, and coir industries, in order to create new businesses and jobs.
The ministry's long-term goal is to strengthen the country's manufacturing base
through increasing MSME performance through skill and entrepreneurship
development.
PRODUCTS OR SERVICES OF THE COMPANIES WHICH COMES UNDER
MSME-

1. Rank 01Pixel Softek Pvt Ltd.

SERVICES:-

 Geospatial Consulting and Web Applications

 Interoperability and Data Migration

 Mobile Application
  Network Design

2. Rank 02Asian Consulting Engineers Pvt Ltd.

 Environmental management

 Water Supply
  Wastewater Management

 Urban Environment Improvement

 Social Development

3. Rank 03Sensa Core Medical Instrumentation Pvt Ltd.

 Electrolyte Analyzer
 Electrolyte Electrodes

 Electrolyte and Blood Gas Reagents

 Blood Gas Analyzers

 Glucose Meters
4. Rank 04Clairvoyant India Pvt Ltd.

 Big Data & Analytics

 Cloud Computing
 Enterprise Development

 Managed Services
 User Experience and Design

 IT Transformation Services
 Data Engineering
 DevOps
 Machine Learning
  Data Science
 Data Analytics
 Product Design
 Modern Data Platform
Product Engineering

5. Rank 05Rite Water Solutions (India) Pvt Ltd.

 Disinfection Tunnel

 Sanitizer Dispenser

 Spraying Machine

 Disinfectant Biocide Generator

 Alcohol Based Sanitizer
 CHAPTER-4
SIGNIFICANCE OF THE REPORT

MSMEs in India account for around 8% of the country's GDP, 45 percent of manufacturing
output, and over 40% of exports. They might be referred to as the 'Backbone of the Country.'

In accordance with the Micro, Small and Medium Enterprises Development (MSMED) Act
of 2006, the Indian government has launched MSME, or Micro, Small and Medium
Enterprises. These businesses specialise in the manufacture, manufacturing, processing, or
storage of goods and commodities.
MSMEs are a vital part of the Indian economy and have made significant contributions to the
country's socioeconomic growth. It not only creates job possibilities, but it also contributes to
the development of the country's backward and rural areas. According to the government's
annual report (2018-19), India has roughly 6,08,41,245 MSMEs.

MSMEs Redefined

The Micro, Small and Medium Enterprises Development (Amendment) Bill, 2018, proposes
to redefine MSMEs by classifying them as manufacturing or service-providing businesses
depending on their yearly turnover.
Classification of enterprises into micro, small and medium enterprises (in Rs)

Kind of Act of 2006 Bill of 2018

enterprise

Manufacturing Services All enterprises

Investment towards Investment Annual Turnover

plant & machinery towards equipment

Micro 25 lacs 10 lacs 5 Cr

Small 25 lacs to 5 Cr 10 lacs to 2 Cr 5 Cr to 75 Cr

Medium 5 Cr to 10 Cr 2 Cr to 5 Cr 75 Cr to 250 Cr

Benefits of the above-proposed reclassification

There would be no need for periodic inspections to check the investment in plant and
machinery under the proposed reclassification or new classification. In addition, MSMEs'
operations would be transparent, non-discriminatory, and objective.

Highlights of new MSMEs

The Government of India's Atma Nirbhar Bharat Abhiyan, or Self-Reliant India Scheme of
2020, has given MSMEs a new definition.

Following are a few highlighting features of new MSMEs –

 MSMEs can get loans with no collateral.

 A credit agreement worth Rs. 3 lac crores has been reached with MSMEs.
 A 12-month moratorium period is being offered to MSMEs.
 Manufacturing and service MSMEs are treated as one and the same.
  MSM has been given a 48-month repayment period.
 MSMEs are guaranteed a credit rating of 100 percent.
 MSMEs will profit from reclassification in the amount of 45 million units.

Features of MSMEs

Following are some of the essential elements of MSMEs –

 MSMEs seek to improve the lives of workers and craftsmen. They assist them by
offering employment, loans, and other services.

 MSMEs provide banks with credit limits or funding assistance.

 They encourage the growth of entrepreneurship as well as the upgrading of skills by
establishing specialised training institutes.
 They are in favour of improving developmental technologies, expanding
infrastructure, and modernising the industry as a whole.
 MSMEs are known for providing reasonable support in gaining entry to domestic
and international markets.
 They also provide quality certification services and contemporary testing facilities.
 MSMEs are now supporting product development, design innovation, intervention,
and packaging, in line with contemporary developments.

Role of MSMEs in Indian Economy

Since its inception, the MSME sector has shown to be a highly active sector of the Indian
economy. MSMEs create and produce a wide range of items for both domestic and
international markets. They have aided in the establishment and growth of the khadi,
village, and coir industries. They have coordinated and worked with relevant ministries,
state governments, and stakeholders to help rural areas develop.

MSMEs have been critical in offering employment opportunities in rural areas. In

comparison to huge companies, they have aided in the industrialisation of these areas at a
cheap capital cost. The MSME sector has made a significant contribution to the country's
socioeconomic growth by acting as a complement to major industries.

MSMEs also contribute and play an important part in the country's growth in a variety of
ways, including minimal investment, operational flexibility, location mobility, low import
rates, and a large contribution to domestic output.

With the ability and capacity to develop appropriate local technology, provide fierce
competition in domestic and international markets, technology-savvy industries, contribute
to the development of defence materials, and generate new entrepreneurs through the
provision of knowledge, training, and skill up-gradation through specialised training centres

Importance of MSMEs for the Indian Economy

MSMEs are widely recognised as a source of economic growth and a means of supporting
equitable development around the world. They are noted for having the highest rate of
economic growth. MSMEs have propelled India to new heights because to their low-
investment requirements, flexibility in operations, and ability to produce appropriate native
technology.

 MSMEs employ over 120 million people, making them the second-largest source of
employment after agriculture.
 It provides roughly 6.11 percent of GDP from manufacturing and 24.63 percent of
GDP from service activities, with about 45 lac units across the country.
  As India strives to become a $5 trillion economy, the MSME ministry aims to raise
its contribution to GDP by up to 50% by 2025.
 Approximately 45 percent of India's total exports
 MSMEs encourage all-inclusive growth by creating job possibilities, particularly for
persons from the poorer sections of society in rural areas.
 MSMEs in tier-2 and tier-3 cities contribute to the creation of chances for
individuals to use banking services and goods, which might result in the ultimate
accounting of MSMEs' contribution to the economy.
 MSMEs encourage innovation by assisting aspiring entrepreneurs in developing
innovative products, hence increasing company rivalry and fueling growth.

The MSME sector in India is a silent supporter of the national economy, acting as a buffer
against global economic shocks and adversity. As a result, we can claim that India is on its
way to becoming a strong global economy thanks to a quiet revolution fueled by MSMEs.
 CHAPTER-5

LITERATURE OVERVIEW

MSME is the backbone of our Indian economy, allowing for consistent growth in terms of
employment and economic growth throughout time. Its contribution to exports and there
has been a huge increase in industrial expansion. Regardless of these facts, In comparison
to established economies around the world, our Indian MSMEs are trailing. MSMEs face
numerous challenges.

As a result, the predicted strong growth has not materialised. It's turned into a nightmare.

Financial constraints, a lack of marketing techniques, a lack of quality, a lack of newness or

freshness, and so on are all obstacles. As a result, in this study, an attempt has been made to
examine Innovation as one of the factors of the main build, which could have a significant
impact on the performance of Indian-owned MSMEs.

In the current globalisation scenario, Mali (1998) found that micro, small, and medium
firms confront increased rivalry. They must improve in areas such as management,
marketing, product diversification, infrastructure development, and technological
advancement. Furthermore, new small and medium businesses may be forced to relocate
from a low-growth area. They must form strategic alliances with entrepreneurs from
neighbouring countries in order to enter the high-growth region countries.

Subrahmanya (2004) emphasised the impact of globalisation and domestic reforms on

smallscale industries, stating that small businesses have suffered in terms of unit growth,
employment, output, and exports. He also advised that in order to make India more
competitive, the focus should be on technological development and financial infrastructure
building.
Small businesses compete on a global scale and contribute to national income and jobs.
Sudan (2005) outlined the obstacles to the development of micro and small-scale businesses
policy concerns by posing a variety of MSMEs-related questions.

Rathod (2007) examined the SSI sector's growth and pattern, identifying causes for success
and failure, assessing the impact of globalisation on SSis and export opportunities, and
identifying barriers and the challenges that SSis faced in dealing with globalisation. Anjum,
Venna, and Singh (2012) examined the performance of MSMEs in India and focused on
policy improvements that could improve their performance have provided new prospects
for this sector, and it has been considered that the MSME sector has performed well. In
terms of the number of MSME units, production, and employment levels, improvement has
been made.

MSMEs' position in the industrial sector is quickly expanding, according to Venkatesh and
Muthiah (2012), and they have become a thrust area for future growth. They stressed the
need of supporting MSME development. The sector is critical to the country's economic
well-being. Srinivas (2013) looked into it. MSMEs' performance, as well as their
contribution to India's economic growth, have been identified. MSMEs play a large part in
the economy, according to the study of enterprises, employment in MSMEs, and the
conclusion that MSMEs play a significant role in the economy. India's economy is growing
in a more inclusive way.
 CHAPTER-6
OBJECTIVES OF THE REPORT

 examine the conceptual framework, growth, and governance patterns of MSMEs in

the Indian economy

 identify the disease, and several solutions for the resurrection of viable units in the
context of MSMEs

 highlight the different issues and challenges that MSMEs face, as well as their future
potential

 assess the government's efforts to reinvigorate India's SMEs

 Finally, give proposals for improving MSMEs in the Indian context.


Conclusion

In a nutshell, MSMEs have emerged as an engine of growth in Indian economy by way of their
significant contribution to GDP and industrial production. The MSMEs needs to improve its
productivity and quality, reduce costs and innovate. Government policy should help MSMEs to
increase their efficiency and competitiveness within a market driven economy. In order to prevent
the major sickness in MSMEs, new approaches like the cluster approach or harnessing the power of
industry association should be encouraged. To keep this growth engine on the right path and
direction, it is necessary to put emphasis on the fonnulation of friendly policies, conducive operating
environment, improvement of proper infrastructure, securing peace and security, arranging proper
finance, efficient manager and arranging appropriate modem technology for MSMEs