Govt working with states on upward growth of MSMEs
To enhance the productivity and efficiency of micro, small and medium enterprises, the government will focus on their upward growth and encourage more micro units to turn into medium sized enterprises, MSME Secretary Subhas Chandra Lal Das said on Friday. The Centre is working with state governments on this, he said, noting that about 90% of the MSMEs in the country are micro units.
Addressing the final day of the Vibrant Gujarat Global Summit on Friday, he further said that the government will also work with nano enterprises and include them in priority sector lending as well as initiate more schemes for them.
Nano enterprises, which are a smaller set of units under micro enterprises, remain outside the fold of the goods and services tax and also are outside many schemes due to the low turnover, he said. Due to the small size of their businesses, many of these firms are unable to access formal credit channels.
About 2.1 crore such enterprises have also registered on the Udhyam registration portal of the government.
The MSME Secretary further noted that of the 2.1 crore MSMEs registered on the Udhyam portal, the target is to reach 3 crore registrations on the Udhyam portal by the end of the year. He also underlined that the need is to enhance the quality and productivity of MSMEs in the country.
MSMEs will have an important role to play for VIksit Bharat,” he further said, noting that they currently contribute one third of the country’s GDP and about 50% of the exports. They also employ about 16 crore persons.
The contribution by the MSME sector would have to increase further to reach the goal of a developed economy by 2047, he further noted.