In a written reply to the Lok Sabha, Minister of State for Micro Small and Medium Enterprises, Bhanu Pratap Singh Verma highlighted the pivotal role played by MSMEs in driving India’s economic growth. The details provided a nuanced perspective on the sector’s significance and the government’s proactive measures to ensure its continued development.
The MSME sector, contributing nearly 30% to India’s gross domestic product (GDP), emerges as an economic powerhouse. With a manufacturing output share of 36% and a 45% contribution to exports, this sector plays a crucial role in shaping the country’s economic landscape.
As of February 5, 16.86 crore individuals found employment in MSMEs registered on the Udyam Registration Portal and Udyam Assist Platform, highlighting the sector’s pivotal role in providing livelihoods.
Recent import data also reveals a shift in trends. Imports of man-made fibers from China dropped from $1,733.84 million in April-Dec 2022 to $1,621.36 million in the same period of 2023. A similar pattern is observed in imports from Bangladesh, decreasing from $134.14 million to $110.02 million.
Furthermore, customs reports no cases of misdeclaration, specifically polyester clothes labeled as cotton, from China and Bangladesh. This shows the effectiveness of monitoring mechanisms to ensure transparency in trade practices.
Addressing the sector’s needs, the government has greenlit a production-linked incentive (PLI) scheme for textiles. With a substantial outlay of Rs. 10,683 crores over five years, the scheme aims to invigorate the production of man-made fibers (MMF) apparel, MMF fabrics, and Technical Textile products, fostering competitiveness.
Recognizing the challenges faced by MSMEs, such as access to credit, technology, and skilled manpower, the Ministry of MSMEs has been implementing a range of schemes. These include the Prime Minister’s Employment Generation Programme (PMEGP), Credit Guarantee Scheme, MSME-Cluster Development Programme (MSE-CDP), MSME Champions Scheme, International Cooperation Scheme, Procurement and Marketing Support Scheme (PMS) and National SC/ST Hub (NSSH).