Lok Sabha Question No. 2882 (UNSTARRED), answered on 2021-08-05
Subject: Contribution of MSME Sector in Economy
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Rahul Kaswan

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION No. †2882 TO BE ANSWERED ON 05.08.2021

## Contribution of MSME Sector in Economy

†2882. SHRI RAHUL KASWAN:

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

- (a) whether MSME sector of the country has major contribution in the country's economy and is also a major employment provider;
- (b) if so, the details thereof;
- (c) whether  the  sector  failed  to  provide  expected  employment  opportunities  during  recent years and is also facing the problem of non-availability of bank assets; and
- (d) if so, the reaction of the Government thereto?

## ANSWER

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

- (a) & (b): As per 73rd Round  of NSS  Report on Unincorporated Non-Agricultural Enterprises' (July 2015- June 2016) conducted by Ministry of Statistics & PI, estimated number of workers in MSME sector was 11.10 crore.

As per the information received from Central Statistics Office, Ministry of Statistics & PI, Share of MSME Gross Value Added (GVA)  in All India GVA at current prices (2011-12) for the year 2019-20 was 33.1%.

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 2020-21 was 49.45%.

- (c) & (d): The  Ministry  of  Micro,  Small  and  Medium  Enterprises  (MSME)  implement various other schemes for the growth and development of MSME sector in the country. These include  Prime  Minister's  Employment  Generation  Programme  (PMEGP),  Micro  and  Small Enterprises-Cluster Development Programme (MSE-CDP), Scheme of Fund for Regeneration of Traditional  Industries  (SFURTI),  Credit  Linked  Capital  Subsidy  and  Technology  Upgradation Scheme (CLCS-TUS) and SC/ST Hub.

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.

All new and existing Micro and Small Enterprises engaged in manufacturing or services including  trading  activity  are  eligible  to  be  covered  under  Credit  Guarantee  Scheme  (CGS) implemented  by  Credit  Guarantee  Fund  Trust  for  Micro  and  Small  Enterprises  (CGTMSE). CGTMSE has approved 4,35,520 guarantees for an amount of Rs. 30,168.57 crore during 201819,  8,46,650  guarantees  for  an  amount  of  Rs.  45,851.22  crore  during  2019-20,  8,35,592 guarantees for an amount of Rs. 36,899.39 crore during 2020-21.

Under  Interest  Subvention  Scheme  for  Incremental  Credit  to  MSMEs,  number  of beneficiaries and amount are 13,62,355 and Rs. 541.51 crore during 2019-20 and 9,08,860 and Rs. 431.07 crore during 2020-21.

As  part  of  the  Aatma  Nirbhar  Bharat  Abhiyaan,  under  the  Emergency  Credit  Line Guarantee  Scheme  (ECLGS),  around  1.09  crore  MSME  borrowers  have  been  provided  with guarantee support amounting to Rs. 1.65  lakh crore  as on 02.07.2021.

An  online  Portal  'Champions'  has  been  launched  on  01.06.2020  by  Hon'ble  Prime Minister. This covers many  aspects of e-governance including grievance redressal and handholding of MSMEs. Through the portal, total 35,361 grievances have been redressed upto 12.07.2021.

Under the Prime Minister's Employment  Generation Programme  (PMEGP),  the estimated employment generated (number of persons) in micro enterprises during the year 202021 and 2021-22 (as on 01.07.2021) are 5.95 lakh and 1.19 lakh respectively.

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