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MSME Development Initiatives Highlighted at Rajya Sabha

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As per the information received from Central Statistics Office, Ministry of Statistics & PI, Share of MSME Gross Value Added (GVA) in All India Gross Domestic Product at current prices (2011-12) for the year 2018-19 and 2019-20 were 30.5% and 30.0% respectively.

This information was given by Union Minister for Micro, Small and Medium Enterprises, Shri Narayan Rane in a written reply in Rajya Sabha.

MSME’s Contribution in GDP

The MSME sector is an important sector of the Indian economy. As per the information received from Central Statistics Office, Ministry of Statistics & PI, the share of MSME Gross Value Added (GVA) in All India Gross Domestic Product at current prices (2011-12) for the year 2018-19 and 2019-20 were 30.5% and 30.0% respectively. The share of the MSME manufacturing in All India manufacturing gross value output during the year 2018-19 and 2019-20 were 36.9% and 36.9% respectively.  Further, as per the information received from the Directorate General of Commercial Intelligence and Statistics, the share of export of specified MSME related products to All India exports during 2019-20 and 2020-21 was 49.8% and 49.5% respectively.

As per the 73rd Round of the NSS Report on Unincorporated Non-Agricultural Enterprises’ (July 2015- June 2016) conducted by the Ministry of Statistics & PI, the estimated number of workers in the MSME sector was 11.10 crore.

Under the Prime Minister’s Employment Generation Programme (PMEGP), the estimated employment generated (number of persons) in micro-enterprises during the year 2020-21 and 2021-22 (as on 01.07.2021) are 5.95 lakh and 1.19 lakh respectively.

Allocation of Funds for MSMEs

Union MSME Minister Shri Narayan Rane also updated the Rajya Sabha about Govt of India’s initiatives of fund allocation for the MSME development.

The Government of India has taken various measures to strengthen the MSME sector under Aatmanirbhar Bharat Abhiyan (ABA), which includes Rs.3 Lakh crore Collateral-Free Automatic Loans for businesses, Rs. 20,000 crore subordinated debt for stressed MSMEs, Rs. 50,000 crore equity infusion through MSME Fund of Funds, no global tenders for procurement upto Rs. 200 crores along with a revision of the definition of MSME, etc.

Further, as on 02.07.2021, an amount of Rs. 2.73 lakh crore have been sanctioned under Emergency Credit Line Guarantee Scheme (ECLGS) in the country, including Tamil Nadu, of which an amount of Rs. 2.14 lakh crore has been disbursed.

All proposals that are eligible under the relevant guidelines for a collateral-free loan are generally accepted. However, Ministry of Micro, Small and Medium Enterprises (MSME) sometimes receives complaints regarding the denial of a collateral-free loan by the banks. As there is a prescribed procedure for obtaining a collateral-free loan, such complaints received in the Ministry of MSME, are accordingly forwarded to the concerned bank for consideration as per the rule/procedure.

 

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

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