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Section 9: Measures for promotion and development

Micro, Small and Medium Enterprises Development Act, 2006 • Official Statutory Text & Practice Guide

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MSEFC Facilitation Council
Act 27 of 2006
Section 8 All 32 Sections of MSMED Act Section 10
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Legal Commentary & Landmark Judgments: Section 9

Section 9 empowers the Central Government to formulate and implement comprehensive developmental schemes, programmes, and guidelines to facilitate the growth, competitiveness, and modernization of MSMEs.

  • Comprehensive Promotional Mandate: Authorizes central schemes for cluster development, technology upgradation, skill acquisition, tooling facilities, and domestic/international market access.
  • Cluster Development Initiatives: Promotes geographical industrial clusters to achieve economies of scale, shared testing laboratories, common effluent treatment plants, and logistic efficiencies.
  • Administrative Guidance & Binding Character: Guidelines issued under Section 9 bind central government agencies and CPSEs in their interactions with registered MSME units.
Key Landmark Precedents:
  • State of U.P. v. Babu Ram Upadhya (AIR 1961 SC 751): Established that statutory rules and guidelines framed pursuant to express legislative enablement carry statutory force and govern executive action.
  • Indian Council of Agricultural Research v. A.N. Suryavanshi (2007) 15 SCC 657: Affirmed that promotional schemes framed by the government to foster socio-economic objectives must be implemented transparently without arbitrary exclusion of eligible beneficiaries.
Courtroom Practice & Strategic Litigation Guidance:

When representing MSMEs excluded from subsidized credit schemes, technology upgradation funds, or cluster infrastructure subsidies, file a writ petition under Article 226 citing Section 9 to enforce non-discriminatory participation against state instrumentalities.

Section 8 All 32 Sections of MSMED Act Section 10