| Business News |
|
 |
|
|
|
| MSME policy, access to global market on agenda of key meeting called by govt |
|
|
 |
New Delhi: A draft MSME policy, delayed payments and access to global market are among the key items on the agenda of high-level meeting chaired by Union MSME Minister Narayan Rane towards the end of this month. All major industry bodies in the sector have been invited to discuss the issues hurting the sector. As per the draft agenda note circulated by the MSME Ministry, the issues related to definition of MSMEs and institutional credit have also been listed for discussion on April 28 at Vigyan Bhawan in the national capital.
Access to global market and integration of MSMEs into the global supply chain would also be taken up. Industry associations have already sent their feedback to the government on the range of issues including draft MSME policy. The draft policy document for MSMEs in India has been prepared by Indian Institute of Public Administration (IIPA). This draft of policy document noted that the move is in continuation of measures to promote competitiveness, technology upgradation, infrastructure, cluster development, dedicated credit, procurement of products and financial assistance to MSME.
"The purpose is to bring together a comprehensive frame-work of strategies and actions for suitable adaptation and inclusion in the state level policies," said the document. It further stated that the policy would stimulate efficiency and productivity of MSME sector to generate income, employment and become part of domestic and global value chains taking into account structural transformation, competitive edge, demographic dividend and regional balance.
MSME sector has been one of the worst-affected from pandemic and hence has drawn a lot of attention from policy-makers. MSME stands for micro, small and medium enterprises. The central government had in June 2020 widened the definition of MSMEs to cover more firms under its ambit. As per the new definition, a firm with upto Rs 1 crore investment and upto Rs 5 crore turnover qualifies as micro unit. Businesses with an investment of up to Rs 10 crore and turnover of upto Rs 50 crore are classified as small. For medium enterprises, investment limit is upto Rs 50 crore and turnover upto Rs 250 crore.
There are over 6 crore MSMEs in India employing 11 crore people (just next to agriculture). The sector contributes nearly 30 per cent to the country's GDP and accounts for 40% of the exports.
|
|
|
 |
|
|
|
|
|