PM to launch programme to boost MSMES today

NEW DELHI: Prime Minister Narendra Modi will launch a MSME support programme on Friday, which among other things would aim to enhance credit access to micro, small and medium businesses.

The move will give a boost to the micro, small and medium enterprises (MSME) sector and help generate employment. “Various announcements/ deliverables focussed on access to credit, access to market, handholding & facilitation support etc to micro, small and medium enterprises sector are likely to be announced,” a finance ministry tweet said.

The MSME ‘Support & Outreach Program’ will be attended by finance minister Arun Jaitley and minister of state for MSME Giriraj Singh.

The outreach programme will run for 100 days covering 100 districts throughout the country.

“The central ministers are likely to visit these districts for further boosting micro, small and medium enterprises sector in terms of asking entrepreneurs to take benefit of these facilities including access to credit and market,” the ministry added.

The MSME sector constitutes a vast network of over 63 million units and employs 111 million people, contributing around 30 per cent to the gross domestic product.

It accounts for about 45%cent of manufacturing output and around 40% to total exports.

A major obstacle for growth of micro, small and medium enterprises is their inability to access timely and adequate finance as most of them are in niche segments where credit appraisal is a major challenge.

As per the

Reserve Bank of India Mint Street Memo

report, note ban imposed in November 2016 has led to further decline in the already falling credit to the MSME sector, while goods and services tax (GST) roll out has not made any significant positive impact on overall credit to the sector but has deeply dented their exports.

About 97% of MSMES operate in the informal sector.