Lok Sabha Question No. 360 (UNSTARRED), answered on 2022-12-08
Subject: Participation of MSMEs in Global Market
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Girish Bhalchandra Bapat, Pritam Gopinath Munde, Chandra Sekhar Sahu, Rahul Ramesh Shewale

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO.360 TO BE ANSWERED ON: 08.12.2022

## PARTICIPATION OF MSMEs IN GLOBAL MARKET

## 360. SHRI GIRISH BHALCHANDRA BAPAT: DR. PRITAM GOPINATHRAO MUNDE: SHRI CHANDRA SEKHAR SAHU: SHRI RAHUL RAMESH SHEWALE:

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

- (a) whether the Micro, Small and Medium Enterprises (MSMEs) sector in the country is the backbone of country's economic structure;
- (b) if so, the facts thereof;
- (c) whether the Union Government proposes to make more MSMEs competitive across the world to increase exports;
- (d) if so, whether stronger participation of Indian MSMEs in the global markets can accelerate such a growth;
- (e) if so, the details thereof and the steps taken by the Union Government in this regard;
- (f) the  present  share  of  MSMEs  in  the  country's  export  and  the  extent  to  which  the  Union Government proposes to increase it during the next three years;
- (g) the initiatives/efforts being made by the Union Government to help MSMEs to take centre stage in the global space; and
- (h) whether any criteria has been fixed by the Union Government for classification of MSMEs to make these more competitive globally and if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDMUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

(a) & (b): The Micro, Small and Medium Enterprises (MSME) sector is the backbone of the Indian  economy  for  its  contribution  to  the  growth  of  the  Indian  economy.  As  per  information received  from  Ministry  of  Statistics  &  Programme  Implementation,  the  Share  of  Gross  Value Added (GVA) of MSME in All India GDP during 2019-20 and 2020-21 were 30.50% and 26.83% respectively.

(c) to (g): To  enhance  the  competitiveness  of  MSMEs  and  increase  their  contribution  in Indian  exports,  Government  of  India  has  taken  various  initiatives,  namely,  Make  in  India Programme,  Promotion  of  Ease  of  Doing  Business,  improved  availability  of  credit  through MUDRA, Stand  up  India.  Further,  Ministry  of  MSME  has  established  52  Export  Facilitation Centers (EFCs) across the country with an aim to provide requisite mentoring and handholding support to Micro and Small Enterprises (MSEs). Further, to make MSMEs more competitive and accelerate  their  growth  in  global  markets,  Ministry  of  MSME  is  providing  assistance  through various  schemes  namely,  International  Cooperation  (IC)  Scheme,  MSME  Champions  Scheme, Cluster  Development  Programme,  Credit  linked  Capital  Subsidy  Technology Upgradation Scheme  (CLCS-TUS),  Micro  &  Small  Enterprises-  Cluster  Development  Programme  (MSECDP), Technology Centre System Program(TCSP), Procurement and Marketing Schemes (PMS) etc.

To increase competitiveness of MSMEs, a comprehensive B2B Portal- 'MSMEmart.com' is  being  operated  by  the  National  Small  Industries  Corporation  (NSIC)  as  a  one  stop  digital solution to all business needs of MSMEs across all sectors and provide next generation services to MSMEs  to  make  them  competitive  in  global  market.  Further,  Khadi  &  Village  Industries Commission  (KVIC)  is  also  implementing  an  e-commerce  portal  'ekhadiindia.com'  for  B2C outreach, which enables businesses to have a global outreach.

The present share of MSME sector in the country's export is 45.03% (for FY 2021-22). Further,  the  two  components  under  the  IC  Scheme  namely,  Market  Development  Assistance (MDA) component facilitating visit /participation of MSMEs in international exhibitions / trade fairs/  buyer-seller  meet  etc.  abroad  and  also  holding  of  International  conferences/  seminars/ workshops in India, as well as Capacity Building of First Time Exporters (CBFTE) component providing reimbursement of export related costs incurred by new MSE exporters, will inter-alia support MSME sector in their exports.

(h): No, Sir.

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