Highlights of PM Modi’s Era for Indian MSMEs
Here is a first part of SMEStreet The Great MSME Transformation Report in which our editorial teams made efforts to highlight top activities, schemes and policies of PM Modi's leadership that have fetched results for Indian MSMEs.
Prime Minister Narendra Modi has implemented a number of development initiatives and projects since taking office in 2014. Some of the key highlights of his development work include:
- Swachh Bharat Abhiyan: This is a campaign to clean up the streets, roads, and infrastructure of India’s cities and towns.
- Jan Dhan Yojana: This is a financial inclusion program that aims to provide access to financial services, such as bank accounts and credit, to underserved and unbanked populations in India.
- Digital India: This initiative aims to transform India into a digitally empowered society and knowledge economy by promoting the use of digital technologies, such as the internet and mobile phones, to provide government services and create employment opportunities.
- Make in India: This initiative aims to encourage domestic and international companies to manufacture their products in India, with the goal of boosting economic growth and creating jobs.
- Smart Cities Mission: This initiative aims to develop 100 smart cities in India that are equipped with modern infrastructure and facilities, such as reliable power and water supply, efficient urban mobility, and advanced healthcare and education systems.
- Beti Bachao Beti Padhao: This is a campaign to promote the education and empowerment of girls and reduce gender discrimination in India.
- Ayushman Bharat: This is a health insurance program that provides coverage to poor and vulnerable families in India for secondary and tertiary care hospitalization.
- Saubhagya: This is a scheme to provide electricity connections to all households in India.
These are just a few examples of the development initiatives and projects led by Prime Minister Narendra Modi.
PM Modi’s Focus on MSMEs
Micro, small, and medium enterprises (MSMEs), have been a key focus of Prime Minister Narendra Modi’s government in India. The government has implemented a number of measures to support MSMEs, with the goal of promoting their growth and development. Some of the ways in which MSMEs have been benefitted under PM Modi include:
- Increased access to credit: The government has launched a number of schemes to increase access to credit for MSMEs, including the Pradhan Mantri Mudra Yojana, which provides loans of up to Rs 10 lakh to small businesses.
- Ease of doing business: The government has implemented a number of measures to make it easier for MSMEs to start and run their businesses. This includes measures such as simplifying registration processes, reducing compliance requirements, and providing online services.
- Skill development: The government has launched several programs to train and educate MSME workers, including the Pradhan Mantri Kaushal Vikas Yojana and the National Apprenticeship Promotion Scheme. These programs aim to improve the skill level of workers and make MSMEs more competitive.
- Incentives to promote exports: The government has introduced several schemes and incentives to encourage MSMEs to participate in international trade and increase exports.
- Promotion of Digitalization: The government has pushed for Digital India initiative to promote Digitalization of Business for MSMEs to make their process automated and reduce the paper work.
- Subsidies & Tax benefits: Government has introduced various subsidies and tax benefits to help MSMEs to reduce the burden of costs and support the growth of the sector.
- National Technical Textiles Mission (NTTM) : NTTM is an initiative by the Government of India under the Ministry of Textiles and focused on providing support to the technical textile sector in the country.
These are some of the key measures that have been implemented by the government to support MSMEs under PM Modi. However, it’s always beneficial to research and analyze the implementation of such policies in the ground level as it might vary.
Make in India for MSMEs
The Make in India initiative has helped micro, small, and medium enterprises (MSMEs) in a number of ways:
- Access to financing: The initiative has facilitated access to financing for MSMEs through a number of measures, including the provision of collateral-free loans and the creation of a credit guarantee fund.
- Improved ease of doing business: The initiative has contributed to an improvement in the ease of doing business in India, which has benefited MSMEs by making it easier for them to start and operate their businesses.
- Promoting domestic manufacturing: The initiative has encouraged domestic and international companies to manufacture their products in India, which has helped to create demand for goods and services produced by MSMEs.
- Export promotion: The initiative has also promoted exports, which has benefited MSMEs that are involved in the export of goods and services.
- Access to technology: The initiative has facilitated access to technology for MSMEs through measures such as the establishment of technology centers and the promotion of research and development.
Overall, the Make in India initiative has had a positive impact on MSMEs and has contributed to their growth and development.
How FDI is Performing in India
Foreign direct investment (FDI) has been an important source of capital for the Indian economy and has contributed to its growth and development. According to the Department of Industrial Policy and Promotion (DIPP), the total FDI inflows into India reached a record high of US$62.3 billion in 2020-2021. The manufacturing sector has been the largest recipient of FDI, followed by the services sector.
India has implemented a number of measures to promote FDI, including liberalizing its investment policies and simplifying the process for obtaining approvals and clearances. The government has also established special economic zones and free trade zones to encourage investment.
Overall, FDI has been performing well in India and has contributed to the country’s economic growth.