Central government unveils Rs. 50,000 crore support plan for MSMEs
Additionally, various steps have been taken by the government to promote MSMEs, such as revising criteria for MSME classification
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Hyderabad: The Micro, Small, and Medium Enterprises (MSME) sector in India has exhibited a noteworthy contribution to the nation's Gross Domestic Product (GDP), as per the latest data unveiled by the Ministry of Statistics & Programme Implementation. Here's a breakdown of the MSME Gross Value Added (GVA) share in the overall GDP and the MSME Manufacturing Output share in the country's manufacturing output, presented in percentages across different years:
Year | Share of MSME GVA in All India GDP (%) | Share of MSME Manufacturing Output in All India Manufacturing Output (%) |
2017-18 | 29.7 | 37.4 |
2018-19 | 30.5 | 36.9 |
| 2019-20 | 30.5 | 36.6 |
| 2020-21 | 27.2 | 36.9 |
| 2021-22 | 29.1 | 36.2 |
The government has also rolled out several key initiatives to further support the MSME sector, including:
- Offering collateral-free loans up to Rs. 500 lakh with a guarantee coverage of up to 85% for various loan categories through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
- Infusing Rs. 50,000 crore equity through the Self Reliant India Fund, with a provision for a Rs. 10,000 crore corpus from the Government of India.
- Implementing a policy of no global tenders for procurement up to Rs. 200 crore.
- Launching the Raising and Accelerating MSME Performance (RAMP) program with an outlay of Rs. 6,000 crore over five years.
- Integrating the Udyam Portal with the National Career Service (NCS) to facilitate job searches for registered MSMEs.
- Providing relief under the Vivad se Vishwas – I scheme, including refunds and relief to MSMEs facing contract execution issues.
- Introducing the 'PM Vishwakarma' Scheme to benefit traditional artisans and craftspeople.
- Establishing the Samadhaan Portal for monitoring outstanding dues to MSEs from buyers of goods and services.
Additionally, various steps have been taken by the government to promote MSMEs, such as revising criteria for MSME classification, introducing "Udyam Registration" for ease of doing business, including retail and wholesale trades as MSMEs, and extending non-tax benefits for three years in case of an upward change in MSME status.
This information was provided by the Minister of State for Micro, Small and Medium Enterprises, Bhanu Pratap Singh Verma, in a written reply to the Lok Sabha today. With these concerted efforts and initiatives, the MSME sector continues to play a pivotal role in driving economic growth and fostering entrepreneurship across the nation.
