Mr. Premchandra Mansaram Dahake, Maharashtra National Law University, Nagpur
Introduction
The Micro, Small, and Medium Enterprises (MSME) sector is a crucial component of the Indian economy, contributing significantly to employment generation, exports, and economic growth.1 To promote the growth and development of this sector, the Indian government has implemented a regulatory framework comprising of policies, programs, and regulations to address various challenges faced by MSMEs.
The regulatory framework for the MSME sector in India consists of several key components, including the Micro, Small and Medium Enterprises Development Act, 2006, which defines the criteria for classifying enterprises as micro, small or medium enterprises.2 Additionally, the government has established various financial schemes, such as the Credit Guarantee Fund Scheme for Micro and Small Enterprises, to provide collateral-free credit to MSMEs and to ensure timely payments by large corporates to MSME suppliers.3
Other regulatory measures include the Public Procurement Policy for Micro and Small Enterprises, which mandates that government agencies must procure a certain percentage of their requirements from MSMEs, and the Technology Upgradation and Skill Development Program, which provides training and technology upgradation support to MSMEs.
