Lok Sabha Question No. 1908 (UNSTARRED), answered on 2018-12-21
Subject: PMMY for MSMEs
Ministry: FINANCE
Asked by: ANTO  ANTONY, MANOJ RAJORIA

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## 1908 st TO BE ANSWERED ON 21

## UN-STARRED QUESTION NO\_ DECEMBER, 2018 / AGRAHAYANA 30, 1940 (SAKA)

## PMMY for MSMEs'

1908 :

Shri Anto Antony

Dr. Manoj Rajoria

Will the Minister of FINANCE be pleased to state

- (a) whether the Government has made significant efforts for  resolving the major problem of Micro, Small and Medium Enterprises (MSMEs) sector which relates to the lack of adequate credit for expansion of business activities and if so, the details thereof;
- (b) to study the impact of loans extended under the Pradhan Mantri Mudra Yojana (PMMY) on the overall development of
- c) whether the Government has taken cognizance that the recent data released by the Reserve Bank of India shows that there is a decline of nearly 1.5 per cent bank credit to MSMEs during the last three years;
- whether the Government has attempted MSME sector and if so, the details and the major findings of the study;
- (d) the details of credit given by various banks to MSMEs during the last three
- whether the Government has any data regarding number of jobs created by MSMEs
- years, year-wise along with the major reasons for decline in credit to MSMEs; and
- (e) during the last five years and if so, the details thereof, year-wise ?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SHIV PRATAP SHUKLA)

- (a) & (b) Government and Reserve Bank of India (RBI) have taken several steps to ensure access of credit to Micro\_ Small and Medium Enterprises (MSMEs): These inter-alia\_ include, advice to all Scheduled Commercial Banks (SCBs) to achieve a 20% year-on-year growth in credit to Micro and Small Enterprises (MSEs), allocation of 60% of the MSEs advances to the micro enterprise accounts, a 10% annual growth number, of micro enterprise accounts; additional working capital limit to meet the requirements arising due to unforeseenlseasonal increase in demand, adoption of one cluster; operationalising at least one specialised MSME Branch in every district,  simplified computation of working capital of MSE units to make it minimum 20% of the projected annual turnover of the unit for borrowal limits upto Rs.5 crore, setting up of Trade Receivables Discounting System
- (TReDS) to solve the problem of delayed payment of MSMEs, etc.

- (c) and (d) Outstanding credit of Scheduled Commercial Banks(SCBs) to Micro and Small Enterprises (MSEs) as on 31st March is as under

(Amount Rs. in crore

| Financial Year   | Outstanding credit   |
|------------------|----------------------|
| 2015-16          | 9,96,424.94          |
| 2016-17          | 10,70,129.48         |
| 2017-18          | 11,49,353.83         |

Source

RBI.

There was thus an increase of 7.40% in outstanding credit to MSEs in 2016-17 and of 7.40% in 2017-18 over the corresponding previous year:

- (e) As per the Round of National Sample Survey (NSS) (July, 2015 June, 2016), 1109.89 lakh persons were employed in unincorporated, non-agricultural MSMEs (excluding construction): 73rd