The National Board For Micro, Small, And Medium-sized Enterprises

The National Board For Micro, Small, And Medium-Sized Enterprises


The National Board for Micro, Small & Medium Enterprises (NBMSME) and its duties are outlined in Chapter II, Sections 3 to 6 of the MSMED Act-2006. In order to give effect to the formation of NBMSME, rules were notified on September 26, 2006, laying out the process for creating the Board, limiting the terms of all members other than ex-officio members to two years and on how to fill vacancies, call meetings, carry out the duties of the Board members, etc.
In accordance with Subsection 1 of Section 3 of the MSMED Act of 2006 and the National Board for Micro, Small & Medium Enterprises Rules of 2006, the National Board for Micro, Small & Medium Enterprises (NBMSME) was established / notified for the first time on May 15, 2007. It consists of 47 members, including the Chairman, Vice Chairman, and Member Secretary. Minister in charge of the Ministry of MSME is the Ex-officio Chairman of the National Board.

Key Characteristics of The Nbmsme:

•    There are 47 members of NBMSME (18 Ex-officio members and 29 members- the tenure of members is for two years from the date of notification).
•    Is supported by law (statutory backing).
•    Offers representation to all sections/segments, including trade unions, central ministries, associations of micro, small, and medium manufacturing and service organizations, women-owned businesses, etc.
•    The Board has convened six times since it was established, in accordance with the MSMED Act of 2006, which makes quarterly meetings of the Board essential.

The National Board's Duties Include:

The National Board For Micro, Small, And Medium-Sized Enterprises
1.    Review the policies and programs of the Central Government in regards to facilitating the promotion, development, and enhancement of the competitiveness of such enterprises and the impact thereof on such enterprises. 
2.    Examine the factors affecting the promotion and development of Micro, Small, and Medium Enterprises.
3.    Make recommendations on the issues outlined in sub clause (a) above or any other issue that the Central Government refers to it and deems essential or expedient in order to promote the growth and competitiveness of the Micro, Small, and Medium Enterprises.
4.    Provide advice to the Central Government on how to spend the fund or funds created in accordance with section 12.
5.    According to Section 7(2) of the MSMED Act of 2006, an Advisory Committee for MSME may be established by notification and will be presided over by the Secretary of the Ministry of Micro, Small, and Medium Enterprises.
6.    The Advisory Committee is made up of three delegates from State Governments, one from each of the associations for Micro, Small, and Medium Enterprises, and five officers of the Central Government with expertise in issues pertaining to MSMEs.
7.    The member secretary of the advisory committee is also a member secretary of the National Board of Micro, Small & Medium Enterprises (NBMSME).


1.    To investigate the issues the NBMSME raised about the growth and development of the MSME sector and boosting its competitiveness.
2.    To offer the Central Government advice on matters covered by Sections 9 to 12 and Section 14 of the MSMED Act, 2006, which include matters relating to Credit Facilities, Procurement of Preference Policy, Constitution and Administration of Funds, etc., in order to promote, develop, and enhance the competitiveness of Micro, Small, and Medium Enterprises.
3.    To offer guidance to the State Governments (if requested by any of them) on matters relevant to notifying any regulation enacted to implement the provisions of the MSMED Act-2006, including the makeup of Micro, Small Enterprises Facilitation Councils and other organizations as specified under section 30.
4.    After taking into account the level of employment, investments, the need for higher investment in plant and machinery or equipment for technology up gradation, employment generation, and enhanced competitiveness, as well as international standards for classifying small and medium enterprises, recommend or advise the Central Government or State Governments or the Board, as the case may be, in connection with the classification of a class (es) of enterprises.

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