The ‘Rajasthan MSME Policy – 2024’ will remain in force until which of the following date ?

Correct — option (3), 31 March, 2029.

The answer is written into the policy. Clause 4 of the Rajasthan MSME Policy 2024, headed Operative Period and Eligibility, says the policy comes into effect from the date of its notification in the official Gazette and will remain in force until 31 March 2029.

The same clause says the policy supersedes the Policy Package for Micro, Small and Medium Enterprises, 2022.

31 March is the last day of a financial year, so the policy runs to the close of 2028-29. The Government of Rajasthan's Economic Review 2024-25 gives the same end date for the MSME Policy 2024.

The idea to remember: the MSME Policy 2024, the Rajasthan Export Promotion Policy 2024 and RIPS 2024 all end on 31 March 2029; RIPS adds "or till a new policy is notified, whichever is earlier".

Why the others are wrong

• (1)
  31 March, 2028 — One year short. 31 March 2028 closes financial year 2027-28.

  Clause 4(a) of the policy keeps it in force until 31 March 2029, the close of 2028-29. The three 2024 policy documents compared in this card, for MSMEs, export promotion and investment promotion, each name 31 March 2029.

• (2)
  31 March, 2030 — One year too long. 31 March 2030 closes financial year 2029-30.

  The policy text says it will remain in force until 31 March 2029, and the Government of Rajasthan's Economic Review 2024-25 repeats that date. Adding five years to 2025 instead of reading the clause is one way to arrive at 2030.

• (4)
  31 March, 2031 — Two years beyond the date in the policy. 31 March 2031 closes financial year 2030-31.

  Clause 4(a) of the Rajasthan MSME Policy 2024 fixes the end of its operative period at 31 March 2029. The Integrated Cluster Development Scheme, launched on 8 December 2024, also runs until 31 March 2029.

An operative period is the time during which a policy is in force. In the three Rajasthan policy documents of 2024 compared here, it runs from notification or issuance to 31 March 2029, the close of a financial year.

The MSME Policy 2024 describes itself as a One Stop Shop for the incentives the State Government offers. Unless stated otherwise, MSMEs get fiscal benefits under the Rajasthan Investment Promotion Scheme (RIPS) 2024.

It defines an MSME by the Union MSME Ministry's Gazette notification of 1 June 2020, read with the Ministry's Office Memorandum of 2 July 2021. The 2020 notification classifies enterprises by investment in plant and machinery or equipment and by annual turnover.

Key facts

• Clause 4(a): the Rajasthan MSME Policy 2024 takes effect from its notification in the official Gazette and remains in force until 31 March 2029.
• Clause 4(b): the policy supersedes the Policy Package for Micro, Small and Medium Enterprises, 2022.
• The policy offers one-time support of up to ₹15 lakh towards expenses of raising funds through NSE's or BSE's SME exchange platform.
• Micro and small enterprises can get 50% of the cost of acquiring technology or software reimbursed, up to ₹5 lakh per unit.
• RIPS 2024, notified on 8 October 2024, runs till 31 March 2029 or till a new policy is notified, whichever is earlier.

Common traps

• Adding five years to 2024 or 2025 and picking the 31 March that follows. The clause gives the end date directly: 31 March 2029.
• Confusing the MSME Policy 2024 with the Policy Package for MSMEs, 2022, which it supersedes. The two are separate documents with separate operative periods.
• Assuming every 2024 policy words its end date the same way. RIPS 2024 adds 'or till a new policy is notified, whichever is earlier'; Clause 4 of the MSME Policy says only 'until March 31, 2029'.

UnlockIAS will link similar questions from RAS Pre 2018 and 2016 here once those papers are published on this site.

• practice — not a real PYQ

  The Rajasthan MSME Policy 2024 supersedes which of the following?

  • (a)Rajasthan Mineral Policy, 2015
  • (b)Policy Package for Micro, Small and Medium Enterprises, 2022
  • (c)Rajasthan Export Promotion Policy, 2024
  • (d)Rajasthan Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) Act, 2019
  Answer(2) — Clause 4(b) of the MSME Policy 2024 says it supersedes the Policy Package for MSMEs, 2022.

  Option (1) is a mineral-sector policy; option (3) is a separate policy of the same year that runs alongside it to 31 March 2029; option (4) is a state law, under which the Economic Review 2024-25 reports acknowledgement certificates being issued in 2024-25.

• practice — not a real PYQ

  Under the Rajasthan MSME Policy 2024, what is the maximum one-time support to an enterprise towards expenses of raising funds through an SME exchange platform?

  • (a)₹5 lakh
  • (b)₹3 lakh
  • (c)₹15 lakh
  • (d)₹1.5 lakh
  Answer(3) — The policy provides one-time support of up to ₹15 lakh for raising funds through NSE's or BSE's SME exchange platform.

  Option (1) is the cap on technology-acquisition reimbursement; option (2) is the cap on reimbursement for quality certifications and IPR; option (4) is the cap on stall-rent assistance for a fair or exhibition held abroad.