Lok Sabha Question No. 1960 (UNSTARRED), answered on 2020-09-22
Subject: Contribution of MSMEs in Economy
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Thalikkottai Rajuthevar Baalu

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 1960

TO BE ANSWERED ON 22.09.2020

## CONTRIBUTION OF MSMEs IN ECONOMY

1960. SHRI T.R. BAALU:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether the Government has taken steps to raise public awareness of contribution of Micro, Small and Medium Enterprises (MSMEs) to continue the sustainable development in the Indian economy and if so, the details thereof;
- (b) the measures taken by the Government to ease the burden on MSMEs considering the fact that there are over six crore MSMEs across the country, which contribute 29 per cent to the GDP and almost half of the exports and these units also employ more than Eleven crore people;
- (c) whether the Government is aware of the fact that big industries are also responsible for squeezing the margins of Small and Micro industries or forcing them to undersell as they don't  have  the  intellectual  property  rights  for  the  products  they  produce  and  are  forced  to work at just two to five per cent margins; and
- (d) if  so, the efforts made by the Government taking into account that India has around 63.4 million MSME units, which contribute 33.4 per cent of India's manufacturing and 24.63 per cent of the services GDP?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI  PRATAP CHANDRA SARANGI)

- (a): The Ministry of Micro, Small and Medium Enterprises (MSME) implements various schemes  for  sustainable  growth  and  promotion  of  the  MSME  sector.  In  many  of  these schemes such as Credit Linked Capital Subsidy - Technology Up-gradation Scheme (CLCSTUS) and Entrepreneurship and Skill Development Programme (ESDP), awareness through workshops, seminars etc., is an important component.
- (b): The Ministry of Micro, Small and Medium Enterprises (MSME) implements various schemes  and  programmes  for  promotion  and  development  of  Micro,  Small  and  Medium Enterprises (MSMEs) throughout the country. These include the schemes/programmes such as  Prime  Minister's  Employment  Generation  Programme  (PMEGP),  Scheme  of  Fund  for Regeneration of Traditional Industries (SFURTI), A Scheme for Promoting Innovation, Rural Industry and Entrepreneurship (ASPIRE), Entrepreneurship and Skill Development Programme (ESDP), Credit Guarantee Fund Scheme for Micro and Small Enterprises, Credit Linked Capital Subsidy -  Technology  Up-gradation  Scheme (CLCS-TUS), Micro & Small Enterprises - Cluster Development Programme (MSE-CDP), National Scheduled Caste and Scheduled Tribe Hub (NSSH), etc.

Under Atmanirbhar Bharat, Government recently announced a special economic and comprehensive  package  of  Rs.  20  Lakh  crore  for  all  the  sections  of  the  society  including Industries and MSMEs.  Government has taken a number of initiatives to support the MSME sector in the country which include the following;

- i) Rs 20,000 crore Subordinate Debt for MSMEs.
2. ii) Rs 3 lakh crores Collateral free Automatic Loans for business, including MSMEs.
3. iii) Rs. 50,000 crore equity infusion through MSME Fund of Funds.
4. iv) New revised criteria for classification of MSMEs.
- v) New Process of MSME Registration through 'Udyam Registration'.
6. vi) No global tenders for procurement up to Rs. 200 crores, which will help MSMEs.

Hon'ble Prime Minister has launched an online Portal 'Champions' on 01.06.2020. The portal covers many  aspects of e-governance including grievance redressal and handholding  of  MSMEs.  Through  the  portal,  19,593  grievances  have  been  redressed  upto 17.09.2020.

(c) & (d): The Government has notified Public Procurement Policy for Micro and Small Enterprises  (MSEs)  Order,  2012  under  MSMED  Act.  Under  this  policy,  25%  of  annual procurement by Central Ministries /Departments/Public Sector Enterprises (CPSEs) has to be made from Micro & Small enterprises. This includes 4% from MSEs owned by SC/STs and 3%  from  MSEs  owned  by  Women  entrepreneurs.  358  items  are  reserved  for  exclusive procurement from MSEs.

The  Micro,  Small  and  Medium  Enterprises  Development  (MSMED)  Act,  2006 contains specific provisions to deal with cases of delayed payments of the Micro and Small Enterprises (MSEs). Under the provisions of the Act, Micro & Small Enterprises Facilitation Councils (MSEFC) have been set up in the States/UTs. These Councils can be approached by the MSEs for resolution of delayed payment cases by way of conciliation and/or arbitration.

Ministry  of  MSME  has  launched  SAMADHAAN  portal  to  enable  Micro  &  Small Enterprises (MSEs) to directly register their cases on the portal relating to delayed payments by Central Ministries / Departments/ CPSEs/ State Government & other buyers.

Ministry of MSME implements a scheme namely 'Building Awareness on Intellectual Property  Rights  (IPR)',  to  encourage  registration  of  IPR  by  MSMEs.  Under  the  scheme, financial assistance is provided to MSMEs on grant of IPR. During the FY 2019-20, Rs. 9.41 crore  was released under the scheme.

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