Addressing the ‘Maharashtra MSME Conference’ organized by ASSOCHAM, the Minister for MSME, Government of India, Narayan Tatu Rane highlighted the catalyzing function of MSMEs within the development of India. He emphasised that MSME sector is contributing 1/third to India’s GDP and has outstanding potential to develop additional.
Rane highlighted the main target of the Government on selling MSMEs vide a number of schemes which have been initiated during the last eight years to strengthen the MSME ecosystem within the nation. He additionally added that MSMEs must be supported with higher infrastructure and entry to know-how and finance.
He additional 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.”
Minister went on so as to add that the youth of the nation are going to be the flag bearer of the expansion of India, and therefore must be supported by means of higher work alternatives, coaching and an entrepreneurial eco-system.
Sivasubramanian Ramann, CMD, Small Industries Development Bank of India, mentioned, “Five years ago there were 6.3 crore MSMEs and today there is 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. With Udyam number banks can categorize lending 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. 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.”
“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, mentioned, MSMEs play a key function in financial improvement. The sector accounts for over 80% of companies and contributes to greater than half of the worker share. The share of the formal MSME sector within the GDP is as much as 40% in rising economies. The significance of the sector in India’s financial development can’t be over-emphasized.
The presence of over 63 million MSMEs using over 110 million individuals staggered throughout companies, the manufacturing sector contributes almost 30% to the GDP. Maharashtra has about 48 lakh MSME accounting for about 8% of the whole MSMEs within the nation. The bold goal of $5 billion financial system with 25% contribution from the manufacturing sector would require the MSME sector to play a pivotal function. In addition to the varied facilitating schemes introduced by the federal government to assist the sector, ramping up funding within the sector will likely be essential.
Suhail Nathani, Chairman, ASSOCHAM WTO, Trade & Investment, Council and Managing Partner, ELP, mentioned, “The MSME sector has always played an important role in economic development besides the positive impacts on the societal front. They not only boost domestic production but also generate employment and has enormous potential for earning through export. As we look forward to accelerated growth, MSME must be enabled to play a larger role in the scheme of things. Amending existing FTA’s and ensuring that future FTAs include a charter on MSME will have a significant impact on the ability of small Indian producers to align with globalized trading regimes and explore cross-country opportunities more effectively. Such a move will also go a long way in promoting capacity building and efficient utilization of available resources.”
The occasion drew participation for essential stakeholders reminiscent of Kamlesh Gandhi, Co-Chairman, ASSOCHAM MSME Development, Council and CMD, MAS Financials, Joyjit Gupta, Sr. Vice President, Regional Business Head, Kotak Mahindra Bank who additionally addressed the summit.
First printed on: 19 Sep 2022, 08:36 IST