The National Board for Micro, Small and Medium Enterprises (NBMSME) is a statutory body established under the MSMED Act, 2006, first notified on May 15, 2007. It consists of 47 members including the Chairman (ex-officio Minister in charge of MSME), Vice Chairman, Member Secretary, and other representatives from Central Ministries, State Governments, industry associations, trade unions, and various segments of MSMEs. The Board’s primary functions include examining factors affecting MSME promotion and development, reviewing government policies and programs, making recommendations to the Central Government, and advising on the use of funds for MSME development. The Board meets quarterly as mandated by law.

The Advisory Committee under the NBMSME is constituted as per Section 7(2) of the MSMED Act, 2006, chaired by the Secretary of the Ministry of MSME. It comprises five Central Government officers with MSME experience, three State Government representatives, and representatives from MSME associations. The Advisory Committee’s role is to examine matters referred by the NBMSME and to advise on issues related to MSME promotion, policies, credit facilities, procurement policies, fund administration, and classification of enterprises.

Key points about NBMSME and Advisory Committee:

• NBMSME comprises 47 members serving two-year terms (except ex-officio members).
• Advisory Committee supports NBMSME by providing technical and policy advice.
• Both bodies help in policy formulation, program review, competitiveness enhancement, and fund utilization regarding MSMEs.
• The Minister in charge of MSME acts as the ex-officio Chairman of the NBMSME.
• Advisory Committee is chaired by the Secretary of the MSME Ministry and includes government and MSME sector representatives.
• The NBMSME and its Advisory Committee contribute to MSME development by advising Central and State Governments on implementation of MSMED Act provisions and related matters.

This structure ensures representation from diverse stakeholders and supports the government in the effective promotion and regulation of MSMEs in India.

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