Development Commissioner (DC-MSME) Schemes

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Introduction to DC-MSME Schemes

In the globalised Indian economy, many small and medium scale businesses won’t be able to compete in the global market without support. DC-MSME is an autonomous body that provides support in credit, infrastructure, technology, and market to MSMEs for their unparalleled growth in the globalised economy. The DC- MSME stands for Development Commissioner- micro, small & medium enterprises. As the name suggests, the department’s primary focus is the development of the MSME sector in the globalised economy. The department’s primary function is to advise the government on policy formation to promote and develop MSMEs. It was established in 1954 at the recommendation of the Ford Foundation. Over time, its role has grown to include advocating, hand holding and facilitating the growth of MSMEs. 

Understanding DC-MSME

Development Commissioner for MSME has over72 offices and 18 autonomous bodies under it, currently dedicated to supporting the MSME sector’s credit, infrastructure, marketing and technology needs. The DC-MSME includes Training institutes, Trial rooms and Project-cum-Process Development centres. They provide multitudes of services to the MSME sector, which include training for entrepreneurship development, preparation of project and product profiles, pollution and energy audits, consultancy for technical and managerial positions, assistance in exports and facility of testing the products. The office also works as a link between central and state governments.

Main functions of DC-MSMEs

  • It advises the government in policy-making for the promotion and development of MSME.
  • Provide  consulting services  in technical, economic and managerial sectors to MSMEs
  • DC_MSME conducts various training and skill upgradation workshops and institutes for multiple people in the MSME industry.
  • DC_MSME works to increase financial literacy by making economic information related to policy-making available to all people.
  • The DC-MSME also acts as a moderator cum liaison, working closely with Central ministries, planning commissions, state government, and finance institutes like banks advocating for the development of MSMEs
  • It constantly works to evolve and coordinate policies and programmes for developing MSMEs as a subsidiary of large industries.

Key DC-MSME Schemes

The Development Commissioner of MSME has launched many schemes to promote and develop the MSME sector. Some of them are:

Financial assistance on registering for Bar-Code

In this scheme, funding is provided to all MSMEs with EM registration to get a barcode.  The scheme offers financial support for getting GS1 barcoding standards. Under this scheme, 75% of the one-time registration fee paid towards GS1 India is reimbursed, along with 75% of the annual fee for the first three years that MSEs have to pay for using the barcode.  

Setting up Business Incubators 

This scheme aims to give funding and guidance to innovative business ideas mainly revolving around using indigenous knowledge to innovate new technologies, processes, products and procedures which would be industrialised in a year. This scheme provides financial support to any person or MSME with innovative ideas that can later be industrialised and applied to be hosted at various NITs, IITs, technical colleges and research institutions. The host institute can directly apply to the office of the Development Commission or the nearest DIs for application.

Financial Assistance for QMS Awareness

Through awareness campaigns and workshops, this program aims to equip the MSME sector students with Quality Management Standards, Quality Technology Tools and related DC-MSME schemes. The scheme funds expert organisations and industrial liaisons for conducting training, workshops and activities for Quality Management Standards and Quality technology tools. 

Funding for conducting assessments for IPR-related needs of MSMEs

This scheme provides financial assistance for programs that promote assessment studies to identify the IPR needs of identified MSME clusters and industries and also recommend measures for strengthening the IP portfolio. This assistance can be used by any industry associates and technical associations who wish to conduct such assessment research.

Funds for setting up Mini tool room and Training Centers

Mini tool rooms aim to assist MSMEs in designing and manufacturing innovative tools for MSME sectors. In this scheme, financial assistance would be given to set up these mini-trial rooms through public and private partnerships with an individual, a company, an association, an NGO, an SPV set up in collaboration with states, etc. The government of India will give financial assistance to meet the project cost. A competitive bidding process will determine this cost.

Advantages of Participating in DC-MSME Schemes

Funding Support

The scheme provides MSME incentives and benefits in monetary terms in many areas related to marketing, infrastructure, and technological advancement. The scheme also funds innovations and legal matters. 

Gives access to technology to MSME, giving them a competitive edge

Many MSMEs struggle when competing in the global market. DC-MSME’s schemes, like mini-tool rooms and business incubators, provide much-needed access to the MSMEs, giving them competitiveness and boosting their innovations. 

Skill Development 

Small business government initiatives help individuals’ skill development through various training workshops and training camps. This camp not only focuses on quality management standards, IPR awareness, and entrepreneurship training to help upskill the MSME workforce, improving their capabilities and productivity.

Help MSMEs to meet global standards. 

Initiatives like financial assistance for registering for the Bar Code help MSMEs meet global standards, which gives them better market access and export opportunities.

Policy Advocacy

The primary role of DC-MSMEs is to act as a policy advocate for the MSME sector, focusing on the growth of the MSME sector and working closely with state government, central government, and financial institutions.

Challenges and Solutions

Awareness

The major challenge the MSME sector faces today is a need for more awareness. Many schemes and policies support the growth of the MSME sector, but the people associated with MSME sectors need to be made aware of them. This lack of understanding prevents them from taking advantage of various schemes made for them. Active attempts can be made to spread awareness about schemes using media channels, campaigns and workshops.

Simplifying Application Process

Many individuals hesitate to take advantage of government-sponsored schemes, fearing the complicated application process and documentation as they have limited resources and expertise. Streamlining and simplifying the complex application process, giving clear guidelines and offering assistance in filling out application forms can make the entire process easy and accessible. 

Lack of enthusiasm from industries

Most industry experts are interested in something other than conducting training workshops and capacity-building programs for MSMEs. In this case, the experts from host institutions can be encouraged to conduct training and seminars for MSMEs

Mentorships and Handholding 

MSMEs can be given additional mentorships and handholding support during the implementation and utilisation phases by industry experts. This ensures effective execution and maximising the benefits of MSMEs.

Impact of DC-MSME Schemes on Economic Growth

According to the National Sample Survey(NSS) conducted during 2015-16, the MSME sector created 11.10 crore jobs. The MSME sector is the backbone of India’s economy. So, by supporting MSMEs, the government can ensure employment in rural and urban areas. 

  • The schemes help MSMEs enhance their productivity and competitiveness by providing financial support, technological access, and skill development. 
  • Initiatives like business incubators and funding for innovative ideas lead to the development new products, services, and business models, driving economic diversification and growth.
  •  The schemes can indirectly contribute to job creation and increased employment opportunities, particularly in rural and semi-urban areas, positively impacting economic growth.
  • Many schemes work towards helping the MSME sector meet global standards, increasing exports and contributing to a favourable trade balance and overall economic growth
  • Programs focused on quality management, technology adoption, and skill upgradation can improve the productivity and efficiency of the MSME workforce. Higher productivity can lead to increased output and economic growth.

 

Also Read:

List Of Businesses Under MSME

Conclusion 

DC-MSME plays a vital role in the growth of the MSME sector by acting as a policy advocate and assisting in innovation, infrastructure, technological advancement and legal matters for the MSME sector. These initiatives provide monetary support and facilitate access to advanced technologies, infrastructure, and skill development opportunities, thereby enhancing the competitiveness of MSMEs in the global market. By fostering the growth of MSMEs, these initiatives contribute significantly to economic growth, employment generation, export promotion, and overall sustainable development. As India continues to become a global financial powerhouse, the DC-MSME schemes will remain instrumental in empowering the MSME sector and driving the nation’s economic progress.

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Arpita Rathod Placement Representative
Arpita is a seasoned financial content writer with a specialized focus on Goods and Services Tax (GST). With a deep passion for the world of taxation and a Master's in English Literature, her specialization lies in taking challenging topics from diverse fields and breaking them down into digestible, engaging narratives.

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