IAS Gyan

Daily News Analysis

National Board of MSME

12th January, 2023 Economy

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



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


  • 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.

Read A to Z about MSME Sector: https://www.iasgyan.in/daily-current-affairs/msme-sector-21