Prime Minister Narendra Modi on Friday launched an MSME support programme, which aims 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.
Modi said this is a Diwali gift to MSME from the government. "MSME is the livelihood for many entrepreneurs. After agriculture, it is the major sector giving livelihood to many," he added.
Modi said that there is a need to take collective initiative and responsibility for the MSME sector.
The MSME 'Support & Outreach Program' was attended by finance minister Arun Jaitley and Minister of State for MSME Giriraj Singh. The Prime Minister's Office said that the progress of this programme, to be implemented in mission mode, will be monitored on a continuous basis by senior officials of Union and state governments.
"The Central Ministers are likely to visit these Distts for further boosting MSME Sector in terms of asking entrepreneurs to take benefit of these facilities including access to credit and market," the finance ministry said on Thursday.
The MSME sector constitutes a vast network of over 63 million units and employs 111 million people, contributing around 30 per cent to the GDP. It accounts for about 45 per cent of manufacturing output and around 40 per cent to total exports.
A major obstacle for growth of MSMEs 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 RBI's 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 GST roll out has not made any significant positive impact on overall credit to the sector but has deeply dented their exports.
About 97 percent of MSMEs operate in the informal sector.
With inputs from PTI
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Updated Date: Nov 02, 2018 18:06:31 IST