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Wednesday, September 23rd, 2020

The MSME sector is of vital importance to our national economy : Prime Minister

Prime MinisterINVC, Delhi, The Prime Minister, Dr. Manmohan Singh, presented the National Awards to Micro, Small and Medium Enterprises and also to the Banks for here excellence in Micro & Small Enterprises Lending at a function here today.

Congratulating all the distinguished entrepreneurs who received awards today the Prime Minister expressed the hope that their example will motivate entrepreneurs all over the country to strive for higher standards of performance.

The Prime Minister said “The MSME sector is of vital importance to our national economy. It accounts for 8 per cent of the country’s GDP, 45 per cent of its manufactured output and 43 per cent of our exports. It provides employment to over 10 crore people. Our Government has always believed that strong performance of this sector is necessary for us to achieve the objective of rapid and inclusive growth. It is a matter of considerable satisfaction for all of us that the MSME sector has grown at a healthy rate of 10 per cent in recent years.”

To promote the growth of the MSME sector the Prime Minister said that additional measures were announced in the Budget for the Financial Year 2013-14. These included continuation of non-tax benefits available for MSMEs for three years even after an enterprise graduated to a higher category. Fifteen additional tool rooms are being set up in the country with World Bank assistance to facilitate skill development and promotion of new technologies in the MSME sector. Regeneration of traditional industries is being given focused attention and this is expected to benefit 4 lakh artisans engaged in these activities. Another recent initiative to assist the MSME sector is the setting up of the ‘India Inclusive Innovation Fund’ (IIIF) for promoting grass-root level innovation.

The Prime Minister laid emphasis on the need for promoting exports from the MSME sector and said “only a small fraction of enterprises today has the skills, risk appetite and resources to avail of the opportunities offered by processes of globalization. We need to change this state of affairs. I am happy that the Ministry of Micro, Small and Medium Enterprises has been taking steps to promote bilateral cooperation with other countries in the MSME sector and giving our enterprises exposure to international markets and foreign technologies.

The Government’s initiatives can be successful only with the participation of the private sector and civil society. I would urge Industry Associations and Chambers of Commerce in India to come forward with innovative solutions to address constraints that still hamper the development of the MSME sector and also provide constructive inputs for policy formulation and implementation in years to come”.

Welcoming the Prime Minister, the Minister of State (Independent Charge), Shri K. H. Muniyappa said this year’s total number of National Awardees are 110, including 37 from MSME Sector, 47 from Khadi & Village Industries and 20 from Coir Industries and 6 from Public Sector Banks. The MSME sector has been accorded high priority to with core emphasis on skill development, employability and entrepreneurship development. Accordingly the 12th Plan allocation has been substantially enhanced to Rs 24,124 crore in 12th Plan as compared to Rs 11,500 crore during 11th plan.

Underlining the role and importance of Khadi and Village industries and its reforms in the Indian economy, Shri K. H. Muniyappa said the MSME Ministry is implementing a comprehensive reform package for the khadi sector, through ADB funding namely, the Khadi Reform and Development Programme (KRDP), which includes up gradation and capacity building of 300 khadi institutions and improved marketing with the financial assistance of Rs. 950 crore. Steps are also being taken to distribute 1 lakh modern Chrakhas under KRDP for ensuring higher productivity for the artisans.


While highlighting the major flagship programme of the Ministry, Shri K H Muniyappa said that the Prime Minister’s Employment Generation Programme (PMEGP) of the Ministry operated through KVIC, has proved to be a remarkable avenue for generation of both self employment and wage employment in a sustainable manner. Since the inception of PMEGP in 2008-09, more than 2.34 lakh new entrepreneurs have been assisted so far and created about 21.26 lakh employment opportunities across the country with Margin Money Subsidy released to the tune of Rs. 5167.00 crores. This year onwards the Ministry has targeted over 100 new enterprises per district every year under PMEGP in all the districts in the country. During 12th Plan period, the Ministry intends to create around 5 lakh such enterprises under PMEGP creating employment opportunities for around 40 lakh persons in the country with an outlay of Rs. 8060 crore.



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