Micro, Small & Medium Enterprises in the Indian Economy

Prior to the enactment of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, small industries in India comprised tiny, cottage, traditional, village and modern small enterprises. These enterprises were fragmented across various Ministries/Departments of the Government of India for the purpose of development schemes and concessions. In order to streamline procedures, correct discrepancies and avoid neglect of certain sectors, MSMED Act was enacted on June 16, 2006. This Act provides the first-ever legal framework recognising the concept of enterprise (comprising both manufacturing and service entities), defining medium enterprises and integrating the three tiers of these enterprises, namely micro, small and medium. This book deals with various aspects of the development of small enterprises in India, including their advantages, performance and problems. More importantly, it suggests measures which would enhance the competitiveness of small enterprises in order to enable them to compete in the globalised world.