Lok Sabha Question No. 791 (UNSTARRED), answered on 2020-09-17
Subject: International MSME Day
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: C.N. Annadurai, Dhanush M Kumar, Ganesan Selvam

791.

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 791

TO BE ANSWERED ON: 17.09.2020

## INTERNATIONAL MSME DAY

SHRI C.N. ANNADURAI;

SHRI DHANUSH M. KUMAR;

SHRI SELVAM G:

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

- (a) whether the International Micro, Small and Medium Enterprises (MSME) Day was celebrated in the country recently and if so, the details and main theme thereof;
- (b) whether MSME sector lags behind the foreign counterparts due to lack of latest business skills and if so, the corrective steps taken by the Government in this regard;
- (c) whether the Government also proposed to accelerate the pending reforms in the MSME sector and if so, the details thereof ; and
- (d) the  other  steps  taken  by  the  Government  to  increase  MSMEs  contribution  to India's GDP to over 50% from the current 29%?

## ANSWER

## MINISTER FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NITIN GADKARI)

- (a): Micro, Small and Medium-sized Enterprises Day instituted by United Nations General Assembly is celebrated every year on June 27 th . Ministry of Micro, Small and Medium Enterprises (MSME) has not organized any event to celebrate the occasion this year owing to COVID 19 pandemic and restriction imposed therein.
- (b): Lack  of  access  to  latest  business  skills  affects  the  capability  of  MSMEs  to compete in the global market. In order to enhance the competitiveness and viability of MSMEs,    the  Ministry  of  MSME  implements  a  number  of  schemes  targeted  at providing marketing assistance,  credit support, skill development, technological and quality  upgradation.    Further,  to  provide  skilled  manpower,  access  to  advanced technology and business advisory services for the MSME Sector, Ministry of MSME is running Technology Centres catering to MSME units across the country.

(c) & (d): The growth of micro, small and medium enterprises depends on various factors such as access to market, quality of products, availability of timely credit, upgradation  of  technology,  etc.    For  capacity  building  of  Indian  MSME  Sector, Government  has taken several measures such as implementation of National Manufacturing  Competitiveness  Program,  adoption  of  lean  manufacturing  practices, providing  design  expertise  to  enterprises  etc.  To  ease  the  credit  flow  to  MSMEs, Government is implementing schemes like Credit Guarantee Trust Fund for Micro and Small  Enterprises  (CGTMSE),  Credit-Linked  Capital  Subsidy  Scheme,  and  Interest subvention  Scheme  etc.  Further,  to  provide  marketing  support  to  micro  and  small enterprises (MSEs), the Public Procurement Policy mandates 25%  of annual procurement from MSEs by the Central Ministries/Departments & CPSEs including 4% from MSEs owned by SC/ST and 3% from Women owned MSEs.

Under the Atmanirbhar Bharat Abhiyan, Government of India has announced a special economic and comprehensive package of Rs.20 Lakh crore for all the sections of the society including MSMEs. As part of the stimulus package, the MSME sector has not only been given substantial allocation but has also been accorded priority in implementation of the measures to revive the economy. Announcements made under the  stimulus  package  include  Rs  20,000  subordinate  Debt  for  stressed  MSMEs;  Rs 50,000 crore Equity infusion for MSMEs through Fund of Funds; Rs 3 Lakh Crore Emergency  Credit  Line  Loan  for  MSMEs;  No  global  tenders  for  government procurement up to Rs. 200 crores; upward revision of MSME definition.

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