Lok Sabha Question No. 916 (UNSTARRED), answered on 2020-09-17
Subject: Contribution of MSMEs in GDP
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Shantanu Thakur, Naranbhai Bhikhabhai Kachhadiya, Jaswantsinh Sumanbhai Bhabhor, Parbatbhai Savabhai Patel

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA

## UNSTARRED QUESTION No. †916 TO BE ANSWERED ON 17.09.2020

## CONTRIBUTION OF MSMEs IN GDP

## †916.  SHRI SHANTANU THAKUR:

SHRI NARANBHAI KACHHADIYA:

SHRI JASWANT SINGH BHABHOR:

SHRI PARBATBHAI SAVABHAI PATEL:

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

- (a) whether Micro, Small and Medium Enterprises (MSMEs) sector is the backbone of the Indian economy and generates second most number of employment after agriculture and if so, the details thereof;
- (b) whether MSMEs  sector contributes 8-10 percent of the GDP,  40 percent of manufacturing output and 45 percent of exports from the country and if so, the details thereof; and
- (c) the reasons for unfair treatment with MSMEs sector when it comes to provide facilities and stimulus to the said sector?

## ANSWER

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

- (a): Yes Sir.

As  per  73 rd round  of  National  Sample  Survey  (NSS)  (July  2015-  June  2016)  conducted  by Ministry of Statistics & Programme Implementation (MoSPI), the estimated employed persons in MSME Sector are about 11.10 crore.

(b): As per the information received from Central Statistics Office, Ministry of Statistics & PI, MSME sector contributed 30.3% in All India GDP and 37.3% of manufacturing output in All India manufacturing output during 2018-19.

As per the information received from Directorate General of Commercial Intelligence & Statistics, share of MSME related products' exports in All India exports during 2019-20 was 49.8%.

(c): The  Ministry  of  Micro,  Small  and  Medium  Enterprises  (MSMEs)  implement  various schemes  to  grow  MSME  sector  and  provide  stimulus  to  MSMEs  by  various  schemes  and packages.  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).

Recently, Post Covid-19, Government has taken a number of initiatives under Aatma Nirbhar  Bharat  Abhiyan  to  support  the  MSME  Sector  in  the  country  especially  in  Covid-19 Pandemic. Some of them are:

- 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  Registration  of  MSMEs  through  'Udyam  Registration'  for  Ease  of  Dong Business.
6. vi) No global tenders for procurement up to Rs. 200 crores, this will help MSME.

An  online  Portal  'Champions'  has  been  launched  on  01.06.2020  by  Hon'ble  Prime Minister. This covers may  aspects of e-governance  including grievance redressal and handholding of MSMEs. Through the portal, total 19,181 grievances have been redressed upto 14.09.2020.

RBI has also announced several measures to Reduce Financial Stress of MSMEs.

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