Lok Sabha Question No. 3627 (UNSTARRED), answered on 2023-08-10
Subject: Incentives to MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Amar Singh

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 3627 TO BE ANSWERED ON 10.08.2023

## INCENTIVES TO MSMEs

## 3627. DR. AMAR SINGH:

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

- (a) the  details  of  support  and  incentives  being  provided  to  encourage  the  growth  and development of Micro, Small, And Medium Enterprises (MSMEs) in the country;
- (b) the manner in which the Government is facilitating access to credit and financial assistance for MSMEs to promote entrepreneurship;
- (c) whether there are any plans to enhance the competitiveness of MSMEs in the global market and if so, the details thereof;
- (d) the steps being taken to promote innovation and technology adoption among MSMEs; and
- (e) the measures being taken by the Government to simplify regulatory processes and reduce bureaucratic hurdles for MSMEs, with a goal to promote 'Ease of Doing Business' and facilitate their growth and competitiveness?

## ANSWER

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

(a): The  Ministry  of  Micro,  Small  and  Medium  Enterprises  (MSME)  implements  various schemes to encourage the growth and development of MSME sector across the country in the areas of credit support, formalization, 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), Credit Guarantee Scheme for  Micro  and  Small  Enterprises  (CGTMSE),  Micro  and  Small  Enterprises-Cluster  Development Programme (MSE-CDP), Entrepreneurship  Skill  Development  Programme  (ESDP),  Procurement and Marketing Support Scheme (PMS) and National SC/ST Hub (NSSH).

- (b): The Government has taken a number of initiatives towards facilitating greater ease of access to credit and financial assistance for MSMEs. Some of them are:
- (i) Prime Minister's Employment Generation Programme (PMEGP) which is a major credit linked subsidy programme aimed at generating self-employment.
- (ii) Credit Guarantee Scheme (CGS) to strengthen credit delivery system and to facilitate the flow of credit to the Micro and Small Enterprise sector without the hassles of collateral and third party guarantee up to a maximum of Rs. 500 lakh. As announced in Budget 2023-24, Rs. 9,000 crore has been infused in the corpus of CGTMSE to enable additional credit of Rs. 2 lakh crore with a reduced cost of credit.
- (iii) Self  Reliant  India  (SRI)  Fund:  Rs.  50,000  core  equity  infusion  through  SRI  Fund.  This scheme has  a  provision  of  Rs.  10,000  crore  from  Government  of  India  and  Rs.  40,000 crore  leverage  through  Private  Equity/Venture  Capital  funds.  This  initiative  is  aimed  at providing growth capital to the deserving and eligible units of MSME sector.
- (iv) Launch  of  Udyam  Assist  Platform  on  11.01.2023  to  bring  Informal  Micro  Enterprises (IMEs) under the formal ambit for availing the benefits under Priority Sector Lending.

(c) & (d): Ministry  of  Micro,  Small  and  Medium  Enterprises  (MSME)  implements  MSME Champions  scheme  with  the  objective  to  modernize  MSMEs'  manufacturing  processes,  reduce wastages, encourage innovativeness, sharpen business competitiveness and facilitate their National and Global reach and excellence. Various financial incentives are being provided to MSMEs under the  scheme.  Components  under  the  MSME  Champions  scheme  are  MSME-Sustainable  (ZED), MSME-Competitive (Lean) and MSME-Innovative (Incubation, IPR, Design and Digital MSME).

(e): The Government has taken several steps for making favourable environment to boost the MSME sector in the country under Ease of Doing Business. Some of them are:

- (i) Udyam Registration (UR) Portal provides fully online, paperless and transparent MSME registration process. No documents or proof are required to be uploaded for registering an MSME. Only Aadhaar Number and PAN is enough for registration. PAN and GST linked details on investment and turnover of enterprises are taken automatically from Government databases.
- (ii) Digital  Payments to pass on the benefits of  the  schemes of  Ministry  of  MSME  through digital payment gateway.
- (iii) MSME  SAMBANDH  Portal-  helps in monitoring the implementation of Public Procurement Policy for micro and small enterprises.
- (iv) MSME SAMADHAAN Portal- helps in empowering micro and small entrepreneurs across the country to register their cases relating to delayed payments.
- (v) Champions Portal for speedy redressal of grievances.
- (vi) Under  Public  Procurement  Policy  for  Micro  and  Small  Enterprises  Order,  2012,  the number of regulatory compliances in regard to Government to Business and Government to Citizen, has been reduced from 7 to 4.
- (vii) Government e-Marketplace (GeM)- facilitates online procurement of common use Goods & Services required by various Government Departments/ Organizations/CPSEs.