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<keyword id="175632" type="UNKNOWN" weightage="20" keywordseo="MSME-sector">MSME sector</keyword> is one of the most neglected sectors with respect to public policy but has immense potential. It is because MSMEs are the backbone of any industrial economy. Across the world, most transformations have happened on the back of robust industrial sector, and MSMEs have played a critical role in these transformations. 
 In India, the <keyword id="6395867" type="UNKNOWN" weightage="20" keywordseo="manufacturing-sector">manufacturing sector</keyword> has been lagged behind and the government has envisaged an ambitious '<keyword id="6354869" type="UNKNOWN" weightage="20" keywordseo="make-in-India">Make in India</keyword>' program to give the sector a boost. The 'Make in India' program cannot do well without the MSME sector overall doing well because the sector, at present, provides employment roughly to one in 15 people in India and is responsible for roughly 45 per cent of India's exports. Despite all this, the sector remains highly troubled. 
 
It is because there are several unique problems that the sector faces in India. Most of these emanate from the fact that roughly 95 percent of enterprises in the sector are still unregistered. It means these enterprises are outside the ambit of formal schemes and programs of the government. 
 
For this, the government recently launched the Udyog Aadhar Scheme, which aims to register unregistered enterprises and bring them with the ambit of schemes and policies of the government. It is a major initiative and may help enterprises become part of the formal system. 
 
The second issue is that the unorganized nature of the sector results in the lack of marketing support at the national and international level and lack of integration in the global value chains. It has resulted in restriction of goods and services to only local markets that results in loss of revenue to the people employed in the value chain of the overall network. A collaborative approach between the stakeholders of the MSME ecosystem can help in improving quality as well as give an access to markets for a large number of MSME enterprises. 
 
The third major issue is the feeling of trust between an agglomeration of firms/enterprises and even between a firm and the government. 
 
Firms feel that the government is taking information from them to get taxes or harass them rather than to build a database for helping the enterprises achieve their true potential. It is even seen in the last year's national innovation survey that saw a large amount of enterprises talking about government as a major barrier to innovation. 
 
Also, another major problem is with respect to labour laws in the sector, which makes the firms perceive the government as a problem rather than as a helper/collaborator. The inhibition of trust has hampered and continues to hamper the growth of the MSME sector and the Indian economy. 
 
Fourth is the issue of credit flow to the sector. The RBI has adopted the recommendations of the PM's task force on MSMEs in 2010 and continues to use it for schemes to benefit MSME sector, but the implementation of these by banks and benefits to the individual firms are seen as major challenges that are seen on the ground. 
 
Fifth issue is innovation in the MSME sector. India's overall approach to innovation in MSMEs has been built around the idea that technology and R&amp;D are innovation. While technology and R&amp;D can be used to support or result in innovation, they are not innovation. Similarly, some government institutions and MSME sector are misaligned. It is because government CSIR labs produce technologies and R&amp;D that is very rarely taken up by the MSME sector. It makes R&amp;D and innovation in MSME's quite antithetical. 
 
Finally, there are several institutions at the innovation level in the country that are simply defunct. These include institutions like the National Innovation Council and the National Manufacturing Competitiveness Council (NMCC) that are without the head of institutions at present. These should see appointments at the earliest or should be completely dismantled. 
 
Over the next few decades a critical factor in making India competitive will be making MSMEs competitive. It will happen only when the government and firms resolve some of the issues mentioned here. A process driven and systematic approach to bridging the trust deficit will help MSME become more competitive. 
 
(The article is co-authored with Sankalp Sharma, Senior Researcher at the Institute for Competitiveness, India. Amit Kapoor is Chair, Institute for Competitiveness &amp; Editor of Thinkers. The views expressed are personal. Amit can be reached at <a href="mailto:amit.kapoor@competitiveness.in">amit.kapoor@competitiveness.in</a> and tweets @kautiliya)

Here’s why the MSME sector is lagging behind

New Delhi, Mar 18 () DMK parliamentarian T K S Elangovan on Wednesday expressed concern over the decline in the share of MSME sector in the country's GDP to 28 per cent from 45 per cent in 2011 and said smaller industries were suffering due to lack of bank financing. Initiating the discussion on working of the Ministry of Micro, Small and Medium Enterprises (MSME), he said the allocation to the sector was lowered in the revised estimate during 2018-19. Elangovan said micro, small and medium enterprises need funds for technology upgradation and infrastructure, but banks were not proving funds. The government should support small industries and banks should lend, he added. Stating that the MSME sector provide huge employment opportunities to people, the DMK leader said the government should re-evaluate its strategy and provide support to this sector for economic development of the country. Countering his charges, Arun Singh of the BJP highlighted various initiatives by the central government to strengthen the MSME sector. He said there was no development in the MSME sector in the last 70 years because of piecemeal approach by previous governments. Participating in the discussion, Amee Yajnik of the Congress said demonetisation has finished this sector and "we have to face it". "You cannot run away, you cannot remain in denial mode," she said, requesting the minister to look into the budgetary allocation and consider simplification of schemes so that it can reach the last person. A Vijayakumar of the AIADMK said Tamil Nadu continues to be a vibrant industrial state with a large base of big factories and small units, with the state having an estimated seven lakh registered MSMEs or 15.1 percent of all such units in the country. "I urge the government to allocate Rs 5,000 crore as one-time special package to support the MSME sector in Tamil Nadu," he said, adding that because of the coronavirus outbreak, the production has been suffering for two months. Ravi Prakash Verma of the Samajwadi Party said MSME units are the backbone of the economy but the sector is facing distress due to various factors. He urged the Centre to raise the budgetary allocation for the MSME ministry. As per Budget estimates, an outlay of Rs 7,572 crore has been earmarked for the MSME Ministry for 2020-21. Sasmit Patra of the BJD said the coronavirus outbreak is going to negatively impact the MSME sector. Elamaram Kareem of the CPIM said MSMEs play a crucial role in providing large-scale job opportunities with the sector employing over 11 crore people. He said the MSME sector has suffered the most due to demonetisation and "unscientific implementation" of the Goods and Services Tax (GST). Anil Desai of the Shiv Sena said consumption slowdown and liquidity constraints have severely impacted the MSME sector. Manoj Kumar Jha of the RJD said the government and Opposition parties can collectively draw a blueprint to help the MSME sector. He said signals are "worrisome" and the sector is going to "bleed" particularly in view of the economic slowdown. Binoy Viswam of the CPI said if the government is serious about MSMEs, first of all it should undertake a study on the impact of demonetisation on the sector. Praful Patel of the NCP said the MSME sector needs to be supported as crores of livelihoods are dependent on it. RSN SMNSMN

DMK MP expresses concern over decline in MSME sector's share in GDP

New Delhi, Jan 31 () The government on Friday said it is committed to supporting the micro, small and medium enterprises(MSME) sector, terming it an important segment of the economy that fosters entrepreneurship and generates employment opportunities at lower capital cost.
 The Economic Survey 2019-20 tabled in Parliament by Finance Minister Nirmala Sitharaman gave a detailed analysis of all the measures taken by the government to support the MSME sector to ensure better credit flow, technology up-gradation, ease of doing business and market access.
 Prime Minister Narendra Modi on November 2, 2018, announced reforms aimed at expediting growth of the sector including in-principle approval for loans up to Rs 1 crore within 59 minutes through an online portal.
 According to the Survey, 1,59,422 such loans have been sanctioned involving Rs 49,330 crore. Of this, Rs 37,106 crore has been disbursed up till October 2019.
 Besides, out of the 25 per cent procurement mandated from MSMEs, 3 per cent is reserved for women entrepreneurs. During 2019-20, procurement has been done from 1,471 women-owned MSMEs to the tune of Rs 242.12 crore. RSN RSN ANU
ANU

Government committed to supporting MSME sector: Survey

Lucknow, Jan 31 () The MSME Export Promotion Council (MSME-EPC) on Friday hailed the Centre's commitment to extend support to the micro, small and medium enterprises which are facing "unprecedented crisis".
 "Due to slackness in demand and non-availability of timely and affordable finances, many units are struggling for survival and some have already pulled down their shutters," MSME-EPC Chairman D S Rawat said.
 Terming the MSME as an important segment of the economy that fosters entrepreneurship and generates employment opportunities at lower capital cost, he said the government's commitment to support the micro, small and medium enterprises (MSME) sector is a welcome step, "especially at a time when these units are facing unprecedented crisis".
 Rawat's statement comes against the backdrop of Union Finance Minister Nirmala Sitharaman giving a detailed analysis in the Economic Survey 2019-20 of measures taken by the Centre to support the MSME sector to ensure better credit flow, technology up-gradation, ease of doing business and market access.
 "There is an urgent need to revive village industries and artisans need to be supported which will help generate direct and indirect jobs. In addition, this will provide inclusive growth," Rawat said.
 Prime Minister Narendra Modi had on November 2, 2018, announced reforms aimed at expediting growth of the sector including in-principle approval for loans up to Rs 1 crore within 59 minutes through an online portal.
 According to the Survey tabled in Parliament, 1,59,422 such loans have been sanctioned involving Rs 49,330 crore. Of this, Rs 37,106 crore has been disbursed up till October 2019.
 Besides, out of the 25 per cent procurement mandated from MSMEs, 3 per cent is reserved for women entrepreneurs. During 2019-20, procurement has been done from 1,471 women-owned MSMEs to the tune of Rs 242.12 crore. SMI MKJ

MSME Export Promotion Council hails govt resolve to support crisis-hit MSME sector

By Roopshree Nair New Delhi, Apr 12 () The MSME sector will tide over the huge blow caused by the lockdown, and reduce chinese import dependence by ramping up domestic manufacturing with the government support, Union Minister Nitin Gadkari has said.In a video-conference with , the MSME minister said the government was working on a "war footing" to resolve issues - like working capital crunch and access to affordable financing - faced by the sector, as millions of units stare at staggering losses.Gadkari said the committees constituted by the Prime Minister's Office are continuously monitoring and assessing the situation on the ground and would suggest if and when the lockdown can be lifted in certain sectors for normal operations to resume, and added that "work should begin where possible while keeping the virus at bay".The MSME Minister said nearly 8-10 lakh units will be restructured in the coming days, asserting that owners will have to take care of their workers and put in place mechanisms for proper sanitisation as a preventive measure once they return to work.Gadkari also informed that a Rs 10,000 crore "Fund of Funds" has been approved by the Finance Committee and will be placed before the Union Cabinet for approval. This fund, he said, will facilitate MSMEs to raise money from the capital market, as a portion of their equity will be purchased by the government."We will encourage MSMEs to enter the capital market and attract foreign investments, increase exports from the sector through large-scale production and create jobs," the minister said.He observed that the government was well aware of the issues faced by micro, small and medium enterprises, and packages announced by the Finance Minister will set in motion a recovery for the sector.Gadkari said that recommendations of the UK Sinha Committee appointed by the Reserve Bank of India will soon be implemented.The minister said he has directed district officers to go to banks and facilitate paper work and coordination for loans to be cleared as fast as possible, and a "branch-wise" monitoring was underway to ease the credit woes of the MSME sector.Referring to reports of nearly 20 lakh migrant labourers living in shelter homes across the country, Gadkari admitted that this was a "serious issue" but said state governments will have to evolve guidelines towards their safe return and factory owners will have to undertake measures to rebuild their confidence.Highlighting that several nations want to source medical devices, masks and ventilators from India in the wake of the virus outbreak, the minister said this was a "golden opportunity" for the country's MSMEs to enhance their production capabilities for the future. RSN BAL

MSME sector will tide over coronavirus crisis: Gadkari

Mumbai, Mar 1 () Union minister Nitin Gadkari onSunday said the Modi government was all set to give a majorboost to the micro, small and medium enterprises (MSMEs) inthe country.He was speaking at the first-ever Bunts Star AchieversAwards 2020 instituted by the Indian Bunts Chamber of Commerce&amp; Industry (IBCCI)."MSMEs account for 48 per cent of the exports andemploy 11 crore people. We are giving a major boost to theMSME sector...it drives the economy," Gadkari said.The MSME minister added that India needs an institutefor enterprises and entrepreneurship."We need fast decision-making and that is the hallmarkof this government," he added.He claimed that despite global economic recession,India was the fastest growing economy."What matters is conversion of knowledge to wealth andwaste to wealth. Environment and development must gotogether," he said, adding that a holistic thinking wasrequired to ensure that infrastructure development is notdelayed.Union Chemicals and Fertilizer Minister SadanandaGowda said that since the BJP-led NDA government came topower, the ease of doing business has improved to the WorldBank global ranking of 63 from the earlier 134.Gowda, a former Karnataka chief minister, also saidGST has "changed the scenario"."GST Council is an autonomous body and in the lasttwo-and-a-half years there has not been a single incident ofdissent," he said.By 2025, Rs 100 crore worth infrastructure projectsare coming up, he said. KKNP NP

Govt to give major boost to MSME sector: Gadkari

New Delhi, Feb 26 () The Centre has decided to include non-scheduled urban and district central cooperative banks in three big ticket schemes to facilitate access to finance for the MSME sector. These schemes include the credit guarantee fund trust for micro and small enterprises, credit linked capital subsidy scheme and interest subvention. The initiative is expected to expand the outreach of the schemes considerably which in turn shall help address the crucial requirement of access to finance of the MSME sector. "The NBFCs have about 13 per cent share in MSME lending, and extend hassle-free credit to MSME sector, especially in the remote areas. The inclusion of NBFCs, scheduled and non-scheduled urban cooperative banks and district central cooperative banks in these schemes will spread the outreach and easy access of credit," Union MSME Minister Nitin Gadkari told . He said the step will also create uniformity and competitiveness across lenders in the financial sector, as the borrower will have the option to choose the lender in accordance with their convenience and approach. "These schemes have been serving the sector but there was a need to take them to next level. Therefore, the ministry has decided to include the non-scheduled urban cooperative banks and district central cooperative banks in the the credit guarantee fund trust for micro and small enterprises; credit linked capital subsidy scheme; and interest subvention scheme," Gadkari said. RSN MKJ

Govt to include non-scheduled urban, district co-op banks in 3 schemes for MSMEs

Lucknow, Feb 1 () The budget proposal to allow invoice financing by NBFCs will help the the micro, small and medium sector greatly, an industry body said on Saturday. 
 "The invoice financing by the NBFCs will help greatly
the MSME sector, but it should be applicable to all registered
as well as non-registered units," MSME Export Promotion
Council Chairman D S Rawat said.
He said that the government should make it applicable to all units operating from conforming as well as non-conforming areas.
Rawat said that in case it becomes applicable to only registered ones, over 60 per cent of the units will be left behind.
 "The lack of timely finance and working capital has always been the topmost concern for MSMEs, be it for local or global trade. The provision to enable NBFCs to extend invoice financing to MSMEs will open up an additional financing channel for MSMEs, helping in economic and financial sustainability of the MSME sector," trade platform Connect2India.com CEO Pawan Gupta said. 
 Getting timely access to capital would even allow more MSMEs to explore global opportunities as well as increase the volume of the trade, Gupta added.
He also welcomed the move for restructuring of debts by a year, but said that keeping in view the prevailing economic conditions, it should be for at least two years.
While presenting the budget, Finance Minister Nirmala Sitharaman said the government has asked the Reserve Bank to extend by a year to March 31, 2021, the Debt Restructuring window for micro, small and medium enterprises to give thrust to the MSME sector.
She also said a scheme will be introduced to provide subordinate debt to MSME entrepreneurs.
 "This subordinate debt which will be provided by banks as quasi equity and would be fully guaranteed through credit guarantee trust for medium and small entrepreneurs, would be an additional channel for entrepreneurs and MSMEs to address their funding and financing needs," the Connect2India.com CEO observed.
Rawat hailed the proposal to raise the turnover of Government e-Marketplace (GeM) platform to Rs 3 lakh crore, noting that it will help the MSME sector.
"But, unless the norms of procurement for preferential
buying from the MSMEs is strongly monitored, its benefits will
not fully be passed on to the targeted sector," he said. SMI MR
MR

Invoice financing by NBFCs to help MSMEs greatly

<keyword id="20190045" type="General" weightage="20" keywordseo="Industry-body" source="keywords">Industry body</keyword> <keyword id="21568150" type="General" weightage="20" keywordseo="SME-Chamber-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="SME Chamber of India" meta.hostid="261" meta.entityid="SME Chamber of India">SME Chamber of India</keyword> has urged <keyword id="19956758" type="General" weightage="20" keywordseo="Finance-Minister" source="keywords">Finance Minister</keyword> <keyword id="19916618" type="General" weightage="20" keywordseo="Nirmala-Sitharaman" source="keywords">Nirmala Sitharaman</keyword> to continue the 45-day <keyword id="21233021" type="General" weightage="100" keywordseo="MSME-payment-rule" source="keywords">MSME payment rule</keyword> for <keyword id="20008810" type="General" weightage="20" keywordseo="corporates" source="keywords">corporates</keyword> and other buyers. According to Section 43B(h) of the <keyword id="19936187" type="General" weightage="20" keywordseo="Income-Tax-Act" source="keywords">Income Tax Act</keyword>, introduced through the <keyword id="19955404" type="General" weightage="20" keywordseo="finance" source="keywords">Finance</keyword> Act 2023, if a larger company does not pay an MSME on time -- within 45 days in case of written agreements -- it cannot deduct that expense from its taxable income, leading to potentially higher taxes. The government in last year's Budget added a new clause under Section 43B of the Income Tax Act to address the challenge of delayed payments faced by MSMEs in the country. "We are pursuing not to change the 45-day MSME payment rules imposed by the Department under the pressure of corporates or multinational companies to save the life span of the MSME sector. Section 43B(h) of the Income Tax Act reinforces the importance of timely payments by mandating that companies settle payments to MSME vendors within 45 days to qualify for deductions," SME Chamber said in a statement addressed to Sitharaman. The industry body argued that this provision serves as a powerful incentive for companies to adhere to payment timelines, thereby supporting the financial health of MSMEs. "Many MSMEs are NPA victims of corporates, who are buying from them and not dealing through the TReDs platform. Most of the corporates and multinational companies are forcefully insisting to deregister from the Udyam Portal and insisting not to deal through the TReDs platform," SME Chamber stated. The industry body also urged the finance minister to consider providing Rs 5 crore loans under the "Differential Rate of Interest" scheme for micro and <keyword id="20569966" type="General" weightage="20" keywordseo="small-enterprises" source="keywords">small enterprises</keyword>. It suggested changing the NPA definition from 90 days to 180 days for the MSME sector. The chamber also sought the setting up of a task force to review various issues, hurdles, grievances and difficulties faced by MSMEs for availing credit facilities and the lack of approach by the financial institutions towards enhancement of credit flow to the MSME sector.

Continue 45-day MSME payment rule: Industry body to Finance Minister Nirmala Sitharaman

New Delhi, Apr 9 () Union Minister Nitin Gadkari on Thursday took stock of the measures taken for micro, small and medium enterprises (MSMEs) and discussed the future course of action, amid the coronavirus pandemic which has dealt a "huge blow" to the sector. "In a structured discussion of over two-and-a-half hours, the minister took stock of the steps taken in the background of the pandemic that has dealt a huge blow on the sector," an official statement said. The measures announced by the Ministry of Finance and the RBI so far were also discussed in the meeting held via video conferencing along with the action taken by Ministry of MSME to minimise the impact of COVID-19 on the MSME sector. The minister stated that the country needs to brace for a dual war, one against COVID-19 and the other on the economy front.While praising the efforts made by the officers and field formations of the ministry, he emphasised that all prescribed precautions on sanitisation, social distancing and PPE have to be invariably followed. He mentioned that due to COVID-19, the demand of medical items like ventilators, PPE kits, masks and sanitisers have increased suddenly over last one month and MSMEs are playing an important role in filling the gap by increasing the production of these items. He said MSMEs engaged in these activities should be facilitated on priority. Gadkari noted that the ministry could register highest ever utilisation of funds in absolute terms during 2019-20 under various schemes of the ministry. It was reported on behalf of the MSME Technology Centres (TCs) that they were engaged in the manufacturing of sanitisers, masks, gowns, face shields and hospital furniture. The TCs affirmed their commitment for ramping up their inhouse manufacturing and also assisting the MSMEs in the manufacture of these items. The minister stressed that this has to be done very quickly because of the bulk requirements of these items. He desired that the TCs should collaborate with experts and agencies with proven and approved technology for manufacture of ventilators and corona testing kits and get into mass production in compliance with the medical standards. Gadakri also urged the officials to go all out for the assistance for MSMEs by revising and upscaling the schemes after proper third party independent evaluation. He urged his officers to get in touch with all stakeholders for a coordinated relief for MSMEs. RSN MKJ

Coronavirus has dealt a 'huge blow' to MSME sector: Gadkari

Lucknow, May 13 () Uttar Pradesh Chief Minister on Wednesday lauded the Centre for Rs 20 lakh crore COVID-19 economic stimulus package, saying it would benefit over three crore people in state's Micro, Small and Medium Enterprises (MSME) sector. He also said that keeping in mind the MSME sector, the state is going to organise a loan fair from Thursday. "Tomorrow, over 36,000 entrepreneurs will be given Rs 1600-2000 crore in loans," said the chief minister according to an official spokesman. "I thank Prime Minister Narendra Modi and the finance minister for the package. Presently, UP is the state with maximum MSMEs. Over three crore people of state are related to the sector directly or indirectly. This will make them strong," Adityanath said. "My government with the help of One District One Product (ODOP) scheme tried to give a new life to MSME sector but due to coronavirus pandemic some hurdles came up. Announcement of Rs 3 lakh crore loan for MSMEs and other initiatives are welcome step," he said. ABN AAR

UP CM praises COVID-19 economic stimulus package

(Eds: Adding details) New Delhi, Mar 19 () MSME Minister Nitin Gadkari on Thursday expressed serious concern over non-payment of nearly Rs 6 lakh crore dues to micro and small enterprises by government and large private firms, and said the Centre is working to find a solution of this serious problem. Responding to a discussion in the Rajya Sabha on the working of the Ministry of Micro, Small and Medium Enterprises (MSME), Gadkari said he has also sent a proposal to the finance ministry suggesting measures for providing relief to micro, small and medium enterprises to mitigate the impact of the coronavirus outbreak. The minister announced that the government will revamp the Khadi and Village Industries Commission (KVIC) within three months and make it more export-oriented. Gadkari also told the House that all banks, including scheduled, private and cooperative, as well as non-banking financial companies (NBFCs) are now allowed to lend money to the MSME sector. He said loans sanctioned and disbursed under various schemes will be monitored through a central portal in his ministry. "The government undertakings procure products but do not pay for 3-4 months. MSMEs are on the verge of collapse. Passing a legislation is easy... There are 20,000-22,000 cases. As per my estimates, big industrialists, state and central government undertakings owe Rs 5.5 lakh crore to Rs 6 lakh crore to small industries," Gadkari said. "This is a serious situation. We are in discussion with the finance ministry and we will find out some solution to it... We have to give their payments within three months," he added. On concerns raised by various members about impact of the coronavirus outbreak on the MSME sector, Gadkari said the sector is facing a big challenge and he is aware of the problem. "I have sent recommendations to the finance minister," he said adding that it would not be fair on his part to reveal the details as a meeting is scheduled for Friday. Finance Minister Nirmala Sitharaman has called a meeting on Friday to discuss the proposals, the minister said. "There has been impact of the coronavirus on the MSME sector... It is a natural calamity," Gadkari said. On Thursday, fourth death due to coronavirus infection was reported in the country and more than 170 people have tested positive so far. Highlighting achievements of the MSME ministry, Gadkari said six lakh industrial units have been restructured under the RBI-appointed U K Sinha Committee on MSMEs. A proposal to create a "Fund of Funds" of Rs 10,000 crore has been approved by the finance ministry and the Cabinet nod will be sought on it, he added. In addition, the finance ministry has approved a proposal for a "Distressed Asset Fund" of Rs 10,000 crore and the ministry will send it for the Cabinet nod, he added. On the KVIC, the minister said he will revamp it in three months and the commission will be strengthened professionally. The ministry will appoint a financial consultant to study and suggest methods to strengthen KVIC. "A three-member committee under the chairmanship of secretary will be set up and we will revamp KVIC in three months and make it export-oriented," the minister said. Acknowledging challenges faced by the sector, Gadkari said the government believed in turning "challenges into opportunities". Earlier, funding under MSME was limited to only scheduled banks but now all banks, NBFCs and cooperative banks can lend to them. About credit flow in the MSME sector, he said that by February 2020, Rs 50,532 crore has been disbursed in 50,532 loans sanctioned. Due to a number of steps to promote khadi, sale of its products has increased to about Rs 4,500 crore this fiscal as against Rs 3,215 crore in the previous financial year, he said. To promote MSMEs, the ministry has created a "Bank of Ideas" and a ranking system for states will be approved. Highlighting the sector's achievement, the minister said there are 6.3 crore units that produce about 8,000 products and employ over 12 crore people. The MSME sector accounts for 33 per cent of the manufacturing output and 45 per cent of the total exports of the country, he said. On some members' concern over decline in budget for the sector, he said the ministry's budget allocation has grown to Rs 7,572.20 crore in 2020-21 from Rs 3,007.42 crore in 2015-16. Under the Prime Minister Employment Generation Programme, in the current year, 58,000 units have been approved so far with a subsidy of Rs 1,712 crore. The minister added that after review of non-sanction of loans with bank officials, "almost 22,000 proposals are to be disbursed in March 2020". He added that banks had rejected 11 per cent proposals, saying it fell out of service area and another 11 per cent as targets were reached. Emphasising the need for setting up clusters, the minister said the government is providing Rs 5 crore grant for setting up such clusters involving 500 persons which can boost the local economy. Earlier, Congress member Jairam Ramesh suggested that those not making payments above Rs 1 crore to MSMEs should be "named and shamed" by putting a defaulters list on the website. Lauding Gadkari for "non-toxic brand of politics" and "dynamism", the senior Congress leader praised the minister and expressed faith in his ability to revamp the sector. NAM MJH HRS

Govt, big pvt firms owe Rs 6 lakh cr to MSMEs; Centre to address issue in 3 months: Gadkari in RS

<cmsannotation type="cmsannotation" annotationid="Who will attend" comment="black_heading" text="Who will attend">Who will attend</cmsannotation> <ol><li>Business leaders, owners and promoters across MSME sectors</li><li>Government ministers, industry bodies and policy makers, leaders from finance and tech institutions</li><li>MSME investors, venture capitalists, leaders from financial institutions, think tanks and consultants</li><li>MSME champions &amp; stars in the making - startups, innovators and entrepreneurs</li></ol>

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