MSME MSMEs are the growth engine of India, contribute 30 pc of India's GDP: Union MSME Minister Narayan Rane
Mumbai: The MSME sector has a catalyzing role in the growth of India with a contribution of nearly 1/3rd of the country's GDP and has remarkable potential to grow further, Union Minister for MSME Narayan Rane said at an ASSOCHAM event in Mumbai on Friday.
He further added, “moving forward, there is a collective attempt to popularize and increase acceptance for the ‘Made in India’ tag within the country and globally.
"There is also an increasing effort to double the number of micro industries in the next five years from the current 6 crores. And, we should focus on grooming high growth industries which are going to be the future growth drivers of the economy and the country,” Rane said at the programme themed ‘Maharashtra MSME Conference’.
He highlighted the focus of the government on promoting MSMEs vide multiple schemes which have been initiated over the last eight years to strengthen the MSME ecosystem in the country.
He also added that MSMEs need to be supported with better infrastructure and access to technology and finance.
The country's youth are going to be the flag bearers of the growth of India, and hence needs to be supported by way of better work opportunities, training and
an entrepreneurial eco-system, he stressed.
Small Industries Development Bank of India (SIDBI) CMD Sivasubramanian Ramann said, “Five years ago there were 6.3 crore MSMEs and today there are more than 9 crore MSMEs in the country. Out of these, 1.5 crore MSMEs are under GST."
The remaining MSMEs also need finance from banks and NBFCs but are not on the radar of banks because they don’t have Udyam number, he said.
With Udyam number banks can categorise lendings to MSMEs as priority sector loans.
In order to bridge this gap, SIDBI is working with micro-finance institutions and small NBFCs to provide loans to small business entities, Ramann said.
More than 5 crore MSMEs will benefit from a special digital program that is being set up to provide Udyam numbers to them in the next two years, he said.
“We have the experience, ability and competence to give money for greenfield projects and many banks provide additional assistance to projects funded by us. Maharashtra has immense potential and has got 3.5 lakh crore in funding from about 22lakh crore that has gone into funding MSMEs in the country. Payment to MSME will need to be further strengthened using digital data available with the Ministry of Corporate Affairs,” he added.
Vinod Pandey, Chairman, ASSOCHAM National Council on Global Value Chain and Director, Govt. Affair and External Affairs, BMW India, said, MSMEs play a key role in economic development.
The sector accounts for over 80 percent of businesses and contributes to more than half of the employee share. The share of the formal MSME sector in the GDP is up to 40 percent in emerging economies.
The importance of the sector in India’s economic growth cannot be over-emphasized, he said.
With the presence of over 63 million MSMEs employing over 110 million people staggered across services, the manufacturing sector contributes nearly 30 percent to the GDP, he underscored.
Maharashtra has about 48 lakh MSMEs accounting for about 8 percent of the total MSMEs in the country. The ambitious target of a $5 billion economy with a 25 percent contribution from the manufacturing sector will require the MSME sector to play a pivotal role.
In addition to the various facilitating schemes announced by the government to support the sector ramping up investment in the sector will be crucial.
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