Synopsis
The Indian government is working towards formalizing 9 crore MSMEs by 2029, aiming to enhance the contribution of this vital sector to the economy. Various initiatives are in place to support sustainable growth and empower marginalized communities.Key Takeaways
- 6 crore MSMEs currently registered.
- Goal to reach 9 crore by 2029.
- MSME sector contributes over 30 percent to GDP.
- Bank credit to MSMEs growing at 13 percent.
- Special schemes for women and marginalized groups.
New Delhi, March 26 (NationPress) With over 6 crore MSMEs currently registered on the Udyam and Udyam Assist (UA) portals, the government aims to increase this number to 9 crore by 2029, as it seeks to formalize all MSMEs in the nation, according to a senior official on Wednesday.
During an Assocham event, Mercy Epao, Joint Secretary of the Ministry of Micro, Small and Medium Enterprises, stated that the MSME sector accounts for over 30 percent of the GDP, 36 percent of manufacturing output, and contributes more than 45 percent of exports.
She noted, "This sector is the second largest employer in the country, providing over 26 crore jobs and contributing more than 5 lakh crore to GST revenues."
The Joint Secretary emphasized that the government is committed to enabling the sustainable growth of globally competitive micro, small, and medium enterprises, which serve as an engine for the Indian economy. Various schemes and initiatives are being implemented to tackle the challenges facing the MSME sector.
The government is also prioritizing the empowerment of women, SC/ST communities, and individuals with disabilities through dedicated programs and campaigns, the official mentioned.
Epao pointed out that bank credit to MSMEs is increasing at a faster rate than that for large enterprises. According to the economic survey for 2024-2025, MSME credit has seen a year-on-year increase of 13 percent, compared to 6.1 percent for large enterprises.
She highlighted that the government has allocated an additional Rs 9,000 crore for the revamped credit guarantee scheme for MSMEs, allowing an extra credit flow of Rs 2 lakh crore to the sector. The guarantee fee has been reduced to just 0.37 per annum, while the guarantee ceiling under the digital footprint model has been raised to Rs 10 crore.
Additionally, guarantee coverage for women-owned businesses has increased from 85 percent to 90 percent, while coverage for others remains at 75 percent. The criteria for MSMEs have been modified to an investment threshold of Rs 2.5 crore and a turnover limit of 10 crore to broaden the benefits available to them.
