MSME Ministry moots development plan

MSME Ministry moots development plan

MSME Ministry moots development plan

The MSME Ministry is expected to ready an indepth plan to revitalise the country’s micro, small and medium enterprises within six months, a sector that contributes almost 38 per cent to the country’s GDP and over 42 per cent to its overall exports.

“The Ministry is in the process of preparing a development strategy for the sector in consultation with all stake-holders. This is expected to be ready within a period of 6 months,” MSME Minister Kalraj Mishra said in a written reply to the Rajya Sabha.

The estimated contribution of manufacturing sector micro, small and medium enterprises (MSMEs) to GDP, during 2012-13, is 7.04 per cent. Taking into account the contribution of services sector MSME, which is estimated at 30.5 per cent during 2012-13, the share of MSME sector in GDP during 2012-13 is 37.54 per cent.

The share of MSME in India's total exports for the year 2013-14, has been estimated at 42.38 per cent. Presenting the maiden budget, Jaitley laid special thrust on promotion of start-ups and allocated Rs 10,000 crore for setting up a venture capital fund for the MSME sector.

Jaitley also proposed a technology centre network to promote innovation, entrepreneurship and agro-industry by setting up a fund with a corpus of Rs 200 crore.

Jaitley said an entrepreneur friendly ‘legal bankruptcy framework’ will be developed for SMEs to enable easy exit. A nationwide ‘District level Incubation and Accelerator Programme’ would be taken up.

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