Minister of State for Micro Small & Medium Enterprises, Bhanu Pratap Singh Verma in a written reply to the Rajya Sabha on Monday informed that the Ministry of MSME is implementing various schemes for the development of MSME in the country.
The initiatives cover benefit of MSME sector across the country in the areas of formalization, technological assistance, infrastructure development, credit support, sustainable practices, skill development and training and market assistance to MSMEs.
These schemes include Prime Minister’s Employment Generation Programme (PMEGP), MSME Champions Scheme, Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE), Entrepreneurship Skill Development Programme (ESDP), Micro and Small Enterprises-Cluster Development Programme (MSE-CDP), Procurement and Marketing Support Scheme (PMS) and National SC/ST Hub (NSSH).
In 2021-22, the share of MSME Gross Value Added (GVA) in All India Gross Domestic Product (GDP) was 29.15%. This was 27.24% in 2020-21.
In the recent past, the Government has taken a number of initiatives to promote the MSME sector in the country, which include:
i) Revised criteria for classification of MSMEs to promote investment.
ii) “Udyam Registration” for MSMEs, for Ease of Doing Business w.e.f. 01.07.2020.
iii) Launch of Udyam Assist Platform (UAP) on 11.01.2023 to bring the Informal Micro Enterprises (IMEs) under the formal ambit for availing the benefit under Priority Sector Lending (PSL).
iv) Roll out of Raising and Accelerating MSME Performance (RAMP) programme with an outlay of Rs. 6,000 crore over 5 years.
v) Launch of MSME Champions scheme with the objective to modernize MSMEs’ manufacturing processes, reduce wastages, encourage innovativeness, sharpen business competitiveness and facilitate their National and Global reach and excellence. Components under the MSME Champions scheme are MSME-Sustainable (ZED), MSME-Competitive (Lean) and MSME-Innovative. MSME Sustainable (ZED) Certification Scheme encourages MSMEs to improve their processes and systems to enhance quality and also move towards sustainability.
vi) Expanding the network of Technology Centres across the country through ‘Technology Centre Systems
Programme’ and ‘Establishment of new Technology Centres / Extension Centres’ to provide technology support to MSMEs, support import substitution and imparting high-end skilling.
vii) Launching of an online Portal “Champions” in June, 2020 to cover many aspects of e-governance including redressing grievances and handholding of MSMEs.
viii) Rs. 5 lakh crore Emergency Credit Line Guarantee Scheme for business, including MSMEs.
ix) Rs. 50,000 crore equity infusion through Self Reliant India Fund.
x) No global tenders for procurement up to Rs. 200 crores.
xi) Inclusion of Retail and Wholesale traders as MSMEs on 02.07.2021.
xii) Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
xiii) As announced in Budget 2023-24, Rs. 9,000 crore has been infused in the corpus of CGTMSE to enable additional credit of Rs. 2 lakh crore with a reduced cost of credit.