National Board of MSME

12th January, 2023 Economy

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Context:

Union Minister of MSME chaired the 19th meeting of the National Board of MSME (NBMSME) held in New Delhi.

NBMSME:

Establishment:

The National Board for Micro, Small & Medium Enterprises (NBMSME) was established/notified for the first time on 15th May 2007.

Composition:

It consists of 47 members including Chairman, Vice Chairman and Member Secretary in accordance with the Sub Section 1 of Section 3 of the MSMED Act, 2006 and National Board for Micro, Small & Medium Enterprises Rules, 2006.
Of the 47 members - 18 are Ex-officio members and the rest of the 29 members- have a tenure of members is for two years from the date of notification).
The Minister in charge of the Ministry of MSME is ex-officio Chairman of the National Board.

Salient Features of the NBMSME:

Has statutory backing.
Provides representation to all sections/segments including Associations of Micro, Small and Medium manufacturing and service enterprises, women enterprises, Central Ministries, States representing different regions of the country, trade unions, etc.
Quarterly meeting of the Board mandatory as per MSMED Act, 2006 - the Board has met six times from the date of its establishment.

Functions of the National Board:

Examine the factors affecting the promotion and development of Micro, Small & Medium Enterprises.
Review the policies & programs of the Central Government in regard to facilitating the promotion & development & enhancing the competitiveness of such enterprises and the impact thereof on such enterprises.
Make recommendations to the Central Government for facilitating the promotion and development and enhancing the competitiveness of the micro, small and medium enterprises.
Advice the Central Government on the use of the Fund or Funds constituted under section 12 of MSMED Act 2006 dated 16th June, 2016.

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