Lok Sabha Question No. 239 (STARRED), answered on 2022-12-22
Subject: Contribution of MSME Sector in GDP
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Rahul Ramesh Shewale, Bhola Singh

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA STARRED QUESTION No. *239 TO BE ANSWERED ON 22.12.2022

## CONTRIBUTION OF MSME SECTOR IN GDP

## *239.         SHRI RAHUL RAMESH SHEWALE: SHRI BHOLA SINGH:

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

- (a) whether the Micro, Small and Medium Enterprises (MSMEs) sector contributes onethird to the Gross Domestic Product (GDP) of the country and if so, the details thereof;
- (b) whether the Ministry has recently organised the Global MSME Summit to promote the visibility of Indian MSMEs and encourage international market linkages and if so, the details thereof;
- (c) whether the Government proposes to double the contribution of MSME sector to the economy by realising its full potential and if so, the details thereof;
- (d) whether there are many internal bottlenecks towards doubling the contribution to the economy; and
- (e) if so, the steps taken by the Government to resolve these bottlenecks and the success achieved in this regard so far?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NARAYAN RANE)

- (a) to (e): A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PART (a) to (e) OF THE LOK SABHA STARRED QUESTION No. *239  FOR ANSWER ON 22.12.2022

- (a):            As  per  the  latest  information  received  from  Ministry  of  Statistics  &  Programme Implementation, the Share of Gross Value Added (GVA) of MSME sector in All India GDP during 2020-21 was 26.83% .
- (b): Confederation of Indian Industry (CII), New Delhi has organised the 19 th edition of  the  Global  MSME  Business  Summit  with  a  theme  "India@100  with  Future  Ready MSMEs" on 30 th November, 2022 at New Delhi, in which Ministry of MSME has provided logo support.
- (c)  to  (e):        The  Ministry  of  Micro,  Small  and  Medium  Enterprises  implements  various schemes for the growth and development of MSME sector in the country in areas of credit support, technological assistance, infrastructure development, skill development and training and  market  assistance  to  MSMEs.    The  schemes/programmes  inter  alia  include  Prime Minister's  Employment  Generation  Programme  (PMEGP),  Micro  and  Small  EnterprisesCluster  Development  Programme  (MSE-CDP),  Scheme  of  Fund  for  Regeneration  of Traditional Industries (SFURTI), Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE)  and  A  Scheme  for  Promoting  Innovation,  Rural  Industry  &  Entrepreneurship (ASPIRE).

The Government has taken a number of recent initiatives to support MSMEs in the country, which inter alia include;

- (i) Rs.  5  lakh  Emergency  Credit  Line  Guarantee  Scheme  (ECLGS)  for  business, including MSMEs.
- (ii) Rs. 50,000 crore equity infusion through MSME Self-Reliant India Fund.
- (iii) New revised criteria for classification of MSMEs.
- (iv) No global tenders for procurement up to Rs. 200 crores.
- (v) 'Udyam Registration' for MSMEs, for Ease of Doing Business.
- (vi) Launching of an online Portal 'Champions' in June, 2020 to cover many aspects of egovernance including grievance redress and handholding of MSMEs.
- (vii) Inclusion of Retail and Wholesale trades as MSMEs w.e.f. 02 nd July, 2021.
- (viii) Non-tax  benefits  extended  for  3  years  in  case  of  an  upward  change  in  status  of MSMEs.

Since the launch of Udyam Portal on 01.07.2020, 1.27 crore MSMEs have registered on the portal as on 18.12.2022.