India foresees MSMEs to contribute $2 trn to GDP by 2024
December 27, 2019 - India
India foresees its micro, small and medium enterprises (MSMEs) to contribute at least $2 trillion to the targeted gross domestic product of $5 trillion by 2024, the MSME ministry said in a yearend review statement. Several steps in technology advancement, skill development and job creation have been initiated this year to achieve this goal.
Under the Prime Minister's Employment Generation Programme (PMEGP), 65,312 new micro enterprises were set up and 5,22,496 employment opportunities generated and a margin money subsidy worth ₹1929.83 crore was utilised.
Under the Micro Small Enterprises-Cluster Development Programme (MSE-CDP), 17 common facility centres (CFCs) and 14 infrastructure development projects (IDPs) were commissioned, and 24 CFCs and 25 IDPs were approved.
Fifty one clusters under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) approved earlier were completed this year and are functional now. Seventy eight proposals of SFURTI clusters were approved.
Eleven detailed project reports of Solar Charkha Mission clusters were approved during fiscal 2019-20.
Under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), 5,46,127 credit facilities were approved amounting to a guarantee of ₹33,381 crore.
The MSME ministry is implementing the Technology Centre Systems Programme (TCSP) at an estimated cost of ₹2,200 crore, including World Bank loan assistance of $200 million, to establish 15 new tool rooms and Technology Development Centres and upgrade the existing 18 such centres across the country. Four such centres at Bhiwadi, Bhopal, Puddi and Tinsukia) are ready for commissioning.
More than 62,000 micro and small enterprises (MSEs) were registered on the Government e-Marketplace (GeM) portal this year and 50.74 per cent of order value on GeM portal was from MSEs.
The government made it mandatory for central public sector undertakings units (CPSUs) to procure 25 per cent instead of 20 per cent from MSEs. Goods and services worth ₹20,139.91 crore were procured from 71,199 MSEs.
Khadi received a separate unique HS code in November to categorise its products in export. The Khadi and Village Industries Commission (KVIC) bagged a fresh order worth over ₹6 crore from CPSUs.