Lok Sabha Question No. 1767 (UNSTARRED), answered on 2022-07-27
Subject: Study on MSMEs
Ministry: COMMERCE AND INDUSTRY
Asked by: Dayanidhi Maran

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 1767. TO BE ANSWERED ON WEDNESDAY, THE 27 TH  JULY, 2022.

## STUDY ON MSMEs

## 1767.  SHRI DAYANIDHI MARAN:

## Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) whether the ministry has conducted any study or analysis of the current fiscal health and recovery for Micro, Small Medium Enterprises (MSMEs) and if so, the details thereof;
- (b) whether the  Ministry  has  conducted  any  forensic  audit  of  the  impact  of  the schemes and beneficiaries who availed the stimulus package offered in the wake of the COVID-19 pandemic and if so, the details thereof;
- (c) the details of the steps being taken by the Government to onboard MSMEs on digital platforms;
- (d) the manner in which MSMEs are being supported to gain access to international markets; and
- (e) the  steps  taken  by  the  Government  to  remove  barriers  in  credit  flow  for MSMEs?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री सोम प्रकाश ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a) & (b):

As per information received from Ministry of MSME, the Ministry got a Study done by Small Industries Development Bank of India (SIDBI) to assess the impact of change in MSME classification on the Sector and impact of Covid-19 pandemic.  The study, inter alia, revealed that around 65 percent of the MSMEs surveyed, have availed the benefits under Emergency  Credit  Line  Guarantee  Scheme  (ECLGS)  and  around  36 percent of the respondents (MSMEs) also availed loans under the Credit Guarantee  Fund  Trust  for  Micro  and  Small  Enterprises  scheme. Government has taken note of the points highlighted in the said report.

As informed by Department of Financial Services, Ministry of Finance, studies  have  been  conducted  to assess  the  impact  of  the  support  to MSMEs through ECLGS.  These studies have found that under ECLGS, the loans were fairly easy to obtain, cost effective, helped to fulfill short term financial needs and eased the cash flow burden. The scheme has been successful in helping MSME sector to navigate through the crisis.

- (c ) to (e): Ministry of MSME has developed the Udyam portal for the registration of MSMEs.  This  portal  has  the  provision  for  onboarding  of  MSMEs  on TReDS platforms and GeM as on date.

Procurement and Marketing Support (PMS) Scheme is under implementation to benefit the MSMEs through promotion of new market access initiatives like organizing / participation in National / International Trade Fairs / Exhibitions / MSME Expo, etc. held across the country.

Besides,  Government  has  announced  the  Aatma  Nirbhar  Bharat package for MSMEs in 2020. The package included: (i)  Subordinate Debt for stressed MSMEs; (ii) Rs. 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for business, including MSMEs, which has subsequently been increased to Rs. 5 lakh crore; (iii) Rs. 50,000 crore equity infusion through Self-Reliant India Fund; (iv) New revised criteria of  classification  of  MSMEs;  (v)  New  registration  of  MSMEs  through 'Udyam Registration' for Ease of Doing Business; (vi) No global tenders for procurement up to Rs. 200 crore.

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