Lok Sabha Question No. 3117 (UNSTARRED), answered on 2019-07-11
Subject: Assistance to MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: D.K. Suresh, Pritam Gopinath Munde, Vinayak Bhaurao Raut, Behanan Benny, Girish Bhalchandra Bapat, Shrikant Eknath Shinde

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

## LOK SABHA UNSTARRED QUESTION NO.  3117 TO BE ANSWERED ON: 11.07.2019

## ASSISTANCE TO MSMEs

## 3117.   SHRI D.K.SURESH:

DR. PRITAM GOPINATHRAO MUNDE:

SHRI VINAYAK RAUT:

SHRI BENNY BEHANAN:

SHRI GIRISH BHALCHANDRA BAPAT:

DR. SHRIKANT EKNATH SHINDE:

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

- (a) whether the Micro, Small and Medium Enterprises (MSMEs) are the backbone of economic development of the country and play major role in industrialization of rural and backward areas and if so, the details thereof;
- (b) whether credit exposures to MSMEs is a major challenge and it still faces lack of credit from Banking sector and if so, the response of the Government thereon;
- (c) whether  MSMEs  do  not  have  the  ability  or  the  money  to  develop  much  needed  finance vertical within their organization and if so, the details thereof;
- (d) whether there is a need to offer them the right products and funding at the right time and help them grow and if so, the steps taken by the Government to assist entrepreneurs in MSME sector; and
- (e) whether the Government is taking any measures to attract more investment to set up adequate number of MSMEs with state-of-the-art technology and if so, the response of the Government in this regard?

## ANSWER

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

(a): Yes  Sir.  Micro,  Small  and  Medium  Enterprises  (MSMEs)  play  a  very  important  role  in economic growth and development of the country by fostering industrialisation and generating large employment  opportunities  in  the  country.  According  to  Central  Statistics  Office  (CSO),  share  of MSMEs in India's Gross Value Added (GVA) was 31.8 % at current prices in 2016-17 and share of MSME product in  India's  total  export  was  48.10%  in  2018-19.  According  to  NSSO  (73 rd round, 2015-16), MSME Sector provides employment opportunities to 11.13 crore people next largest to agriculture.

(b)to(e): The Ministry of MSME implements various schemes and programmes for providing financial  assistance  to  MSMEs  in  the  country.  These  schemes  and  programmes  include  Prime Minister's  Employment  Generation  programme  (PMEGP),  Scheme  of  Fund  for  Regeneration  of Traditional Industries (SFURTI), A Scheme for Promoting innovation, Rural Industry & Entrepreneurship (ASPIRE), Interest Subvention Scheme for Incremental Credit to MSMEs, Credit Guarantee  Scheme  for  Micro  and  Small  Enterprises  (CGTMSE),  Micro  and  Small  Enterprises Cluster  Development  Programme  (MSE-CDP),  Credit  Linked  Capital  Subsidy    and  Technology Upgradation Scheme (CLCS-TUS). Ministry of MSME also implements Technology Centre Systems Programme (TCSP) at an estimated cost of Rs. 2200 crore to establish 15 new Technology Centres (TCs) and to upgrade existing 18 TCs across the country. This supports MSMEs by providing skilled manpower,  access  to  advanced  technology  and  business  advisory  services.  Additionally,  20  new Technology  Centres  and  100  Extension  Centres  in  the  Hub  &  Spoke  model  for  technological upgradation would be established across the country at a cost of Rs. 6,000 Crore. This investment will provide help to MSME sector for technological upgradation and absorption.

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