Lok Sabha Question No. 717 (UNSTARRED), answered on 2020-02-06
Subject: Contribution of MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: K. Subbarayan, Raksha Nikhil Khadse, S.R. Parthiban

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

## LOK SABHA UNSTARRED QUESTION NO. 717 TO BE ANSWERED ON 06.02.2020

## CONTRIBUTION OF MSME SECTOR

## 717. SHRI SUBBARAYAN K: SHRIMATI RAKSHA NIKHIL KHADSE: SHRI PARTHIBAN S.R.:

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

- (a) the contribution of Micro, Small and Medium enterprises (MSMEs) sector to the GDP of the country and the estimated work force in this sector;
- (b) whether the Government proposes to increase the contribution of MSME sector to economy of the country to 50% which is presently at 29% and also proposes to enhance the country's export of MSME products which is 39% presently and if so, the details thereof;
- (c) whether a number of MSMEs were closed between April, 2016 and December, 2019;
- (d) if  so,  the  details  thereof  and the  reasons therefor and the number of jobs lost in this sector during this period; and
- (e) the efforts being made by the Government to protect MSME sector and the employment of the workers in this sector and action plan prepared for generation of employment?

## ANSWER

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

- (a) & (b): As per National Statistical Office, Ministry of Statistics & Programme Implementation, Share of MSME sector in All India Gross Domestic Product (GDP) during 201718 has been 29.7%. As per 73 rd round of National Sample Survey (NSS) (2015-16) by Ministry of Statistics  &  Programme  Implementation  (MoSPI),  the  employed  persons  in  MSME  Sector  are about  11.10  crore.  As  per  the  information  received  from  Directorate  General  of  Commercial Intelligence  and  Statistics,  the  share  of  export  of  specified  MSME  related  products  to  All  India exports during 2018-19 has been 48.10%.
- (c) & (d): The Reserve Bank of  India has issued  guidelines  on  'Framework  for Revival  and Rehabilitation  of  Micro,  Small  and  Medium  Enterprises'  to  Scheduled  Commercial  Banks (excluding Regional Rural Banks) in March 2016. Under this Framework, banks have been advised to identify incipient stress in the MSME accounts and refer it to the Committees formed under the Framework for suitable Corrective Action Plan viz. rectification, restructuring and recovery. As per the information received from Reserve Bank of India, stressed accounts referred to the Corrective Action  Plan  Committee  during  the  half  year  ended  March  2017,  September  2017,  March  2018, September,  2018  and  March  2019  are  1,00,803;  87,062;  1,30,208;  1,50,165  and  1,42,275 respectively.
- (e): The  Ministry  of  Micro,  Small  and  Medium  Enterprises  (MSMEs)  implements  various schemes for  development  and  employment  generation  in  different  sectors  of  MSMEs  across  the country. These include Prime Minister's Employment Generation Programme (PMEGP), Micro and Small  Enterprises-Cluster  Development  Programme  (MSE-CDP),  Scheme  for  Promotion  of MSMEs in North Eastern Region and Sikkim, Tool Rooms and Technology Centers, Mission Solar Charkha (MSC), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), Procurement  and  Marketing  Support  Scheme,  Entrepreneurship  Skill  Development  Programme (ESDP),  Credit  Guarantee  Scheme  for  Micro  and  Small  Enterprises  (MSEs)  and  Credit  Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS).

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