The National Small Industries Corporation (NSIC) is a Public Sector Undertaking (PSU) that comes under the purview of the Ministry of Micro, Small & Medium Enterprises of India. It was set up by the Government of India in 1955 to foster, promote, and aid the growth of the micro, small, and medium enterprises (MSME) in India.
NSIC enhances the competitiveness of the MSMEs by facilitating specially customised schemes while also offering integrated support services in technology, marketing, support, and finance.
NSIC offers several schemes to foster the growth of the MSME sector and these schemes have been listed below, along with their objectives.
|Name of the Scheme||Objective|
|Bank Credit Facilitation||To facilitate MSMEs in accessing credit assistance from nationalised and private sector banks|
|Raw Material Assistance||To offer financial support to the MSMEs for the purchase of raw materials (imported and exported) so that it can be used for producing quality products|
|Single Point Registration Scheme||To provide a single point registration for MSMEs to participate in various government purchases|
To fulfil the credit needs of the MSME units, NSIC has partnered with various private and public sector banks. NSIC facilitates access to credit support to the MSMEs from banks by assisting in the documentation process while also following up with the banks. To avail loans, borrowers can download the loan application forms from the official website of the banks under the ‘Bank Credit Facilitation Scheme. The banks that offer loans under this scheme are Yes Bank, IndusInd Bank, Federal Bank, Kotak Mahindra Bank, HDFC Bank, Tamilnad Mercantile Bank, Jammu & Kashmir Bank, ICICI Bank, AU Small Finance Bank, Ujjivan Small Finance Bank, UCO Bank, Corporation Bank, Bank of Maharashtra, Oriental Bank of Commerce, Bank of Baroda, Axis Bank, Punjab National Bank, State Bank of India, Indian Bank, Central Bank of India, Canara Bank, Syndicate Bank, South Indian Bank, Electronica Finance Limited, and Bestdealfinance.com Pvt. Ltd.
MSMEs can receive assistance from NSIC to procure raw materials as per their requirements in the form of credit and advance payment. Any MSME in the manufacturing segment with a Udyog Aadhar Memorandum (UAM) can take advantage of the scheme. Single MSME units can avail loans of up to Rs.5 crore while a group of units engaged in activities related to manufacturing can avail loans of up to Rs.15 crore. The rate of interest charged on loans availed under this scheme range between 9.50% and 12%. MSMEs availing loans under this scheme need to be repaid within 90 days but this can be extended upon request.
To enhance the share of purchases from the MSME sector, the Single Point Registration Scheme was launched by NSIC in 1976 under the Government Stores Purchase Programme. This scheme enables MSEs to participate in government purchases through a single registration. The MSEs will be issued a Provisional Registration Certificate with a monitory limit of Rs.5 lakh. The PRC will have a validity of 1 year from the date of issue. Some of the benefits that MSEs can enjoy under the scheme have been listed below:
The aim of this scheme is to promote products of micro and small entrepreneurs. The scheme aids the entrepreneurs' market their products either individually or collectively through ‘Consortium’.
Some of the features of this scheme are:
Under this scheme, all the information related to business, technology, finance, and different types of aids offered by NSICs will be displayed in a one stop one-window format. You can visit www.msmemart.com which is a business to business (B2B) web portal. The services can be availed through annual membership.
Some of the benefits of Infomediary Services are:
The Marketing Intelligence Cell works toward acquiring intelligence and other relevant information in order to understand both the existing and potential customers and determine their needs, preferences, and attitude and behavior of the market. The aim to use this information to promote the growth of MSME in India.
Some of the features of Marketing intelligence are:
As NSIC work to promote micro and small enterprise in India, one of the methods that it has employed is to create self-employment opportunities by training unemployed people entrepreneurship building skills, who will be able to new small business enterprises for themselves in any manufacturing or service sectors or look for other employment opportunities. In order to achieve this, NSIC has started a new initiative by entering into franchisee arrangements with private entities who may be interested in setting up Training-cum-Incubation Centres (NSIC-TIC) at various locations across India under Public-Private Partnership (PPP) mode.
This is an initiative launched by the Government of India which aims to help those belonging to SC and ST group to start their own business successfully and take care of their financial requirements.
The Government of India in order to make this scheme successful have allocated Rs.490 crore for the period between 2016 and 2020. All the new and existing SC and ST entrepreneur must be registered on the MSME Databank.
The MSME sector has grown in India in the last few years and has been one of the most dynamic sectors of the Indian economy. Various MSME schemes in India has established business and provided employment opportunities at lower capital cost.
Marketing is one of the most important tools for any business to promote itself and grow. Hence, in order to help enterprises grow, Ministry of Micro, Small & Medium Enterprises, inter-alia, through National Small Industries Corporation (NSIC), a Public Sector Enterprise of the Ministry has been providing marketing support to MSMEs under the Marketing Assistance Scheme.
Some of the objectives of this scheme are:
India currently is facing challenges of providing employment and livelihood to people as the population in the country grows. The MSME sector has been identified as one sector which has the capability of addressing the problem and provide employment opportunities to economically weak people and help them set up their own business.
Aspire scheme is one such scheme which aims in meeting those objectives.
Some of the objectives of this scheme are given below:
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