Role of SIDBI in Financing MSMEs in Uttar Pradesh

Abstract

MSMEs (Micro, Small and Medium Enterprises) as previously Known as SSI (Small Scale Industry) plays a vital role in changing the industrial scenario and strengthening the industrial sector tremendously. A significant feature of the Indian Economy since Independence is the rapid growth of the small scale industries (SSI), in terms of employment and growth. Even the Industrial policy resolution of 1956, while emphasizing the role of cottage and small scale industry stated that they provide immediate large scale employment, offer a method of ensuring a more equitable distribution of National Income, and facilitate an effective mobilization of capital and skill which might remain unutilized. Before the Introduction of MSMED Act 2006, a small scale industry was acquainted as a industry which had the maximum investment ceiling was up to 1 crore, however in certain segment it was extended up to 5 crores. The President under notification dated 9th May 2007 amended the Government of India (Allocation of Business) Rules, 1961. Pursuant to this amendment, (Ministry of Agro and Rural Industries) and (Ministry of Small Scale Industries) have been merged into a single Ministry namely, MINSTRY OF SMALL AND MEDIUM ENTERPRISES . newline