Lok Sabha Question No. 2403 (UNSTARRED), answered on 2023-08-03
Subject: Contribution of MSMEs in GDP
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Mimi Chakraborty

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

## LOK SABHA UNSTARRED QUESTION No. 2403 TO BE ANSWERED ON 03.08.2023

## CONTRIBUTION OF MSMEs IN GDP

## 2403. MS. MIMI CHAKRABORTY:

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

- (a) whether it is a fact that Micro, Small and Medium Enterprises (MSMEs) contribute around 31 per cent to the nation's GDP, 45 per cent share of the overall exports and 34 per cent share of manufacturing output in the country;
- (b) if so, the action taken by the Government for revival and restart of MSMEs on postcovid operations scenario; and
- (c) the  details  regarding  extension  of  collateral  free  loan  to  MSMEs  to  revive  and encourage  new  business  during  the  last  five  years  and  the  current  year  thereof,  State  and bank-wise?

## ANSWER

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

(a): As per the information received from Ministry of Statistics & Programme Implementation, the share of MSME Gross Value Added (GVA) in all India Gross Domestic Product (GDP) during the year 2021-22 was 29.2% and the share of MSME manufacturing output in all India Manufacturing output during the year 2021-22 was 36.2%.

As per the information received from Directorate General of Commercial Intelligence and Statistics (DGCIS), the share of export of MSME specified products in all India exports during the year 2022-23 was 43.6%.

- (b): The  Central  Government  supplements  the  efforts  of  the  State/UT  Governments through  various  schemes,  programmes  and  policy  initiatives  for  overall  development  and promotion of Micro, Small and Medium Enterprises (MSMEs) in the country.

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, new enterprise development, 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).

The Government has taken a number of recent initiatives to support MSMEs in the country, include:

- i. Rs. 5 lakh crore 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. Launching of an online Portal 'Champions' in June, 2020 to cover many aspects of e-governance including grievance redress and handholding of MSMEs.
- vi. Inclusion of Retail and Wholesale trades as MSMEs w.e.f. 02 nd July, 2021.
- vii. Non-tax  benefits  extended  for  3  years  in  case  of  an  upward  change  in  status  of MSMEs.
- viii. Roll out of Raising and Accelerating MSME Performance (RAMP) programme with an outlay of Rs. 6,000 crore over 5 years.
- ix. Launch of Udyam Assist Platform (UAP) on 11.01.2023 to bring the Informal Micro Enterprises  (IMEs)  under  the  formal  ambit  for  availing  the  benefit  under  Priority Sector Lending (PSL).

(c): As  per  the  information  received  from  Reserve  Bank  of  India  on  lending  to  Micro, Small & Medium Enterprises (MSME) Sector, all scheduled commercial banks (excluding Regional Rural Banks) are mandated not to accept collateral security in the case of loans up to  Rs.  10  lakh  extended  to  units  in  the  MSE  sector.  Banks  are  also  advised  to  extend collateral-free  loans  up  to  Rs.  10  lakh  to  all  units  financed  under  the  Prime  Minister's Employment Generation Programme (PMEGP) administered by KVIC. Banks may, on the basis  of  good  track  record  and  financial  position  of  the  MSE  units,  increase  the  limit  to dispense with the collateral requirement for loans up to Rs. 25 lakh (with the approval of the appropriate authority).

Further,  position  of  MSME  loans  outstanding  up  to  Rs.  25  lakh  without  collateral security by Public Sector Banks for FY ended 2019 to 2023 is given in annexure I.

Annexure I

Annexure  referred  to  in  reply  to  part  (c)  of  Lok  Sabha  Un  Starred  Question  No.  2403  for answer on 03.08.2023.

## Position of Loans Outstanding without Collateral Security at the end of year (No. of accounts In Actual and Amount In ₹ Crore)

|       |                           | Mar-19                                 | Mar-19                                 | Mar-19                                                       | Mar-19                                                       |
|-------|---------------------------|----------------------------------------|----------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|
| S. No | Bank Name                 | COLLATERAL FREE LOANS UPTO RS. 10 LAKH | COLLATERAL FREE LOANS UPTO RS. 10 LAKH | COLLATERAL FREE LOANS ABOVE RS. 10 LAKH AND UPTO RS. 25 LAKH | COLLATERAL FREE LOANS ABOVE RS. 10 LAKH AND UPTO RS. 25 LAKH |
|       |                           | No. of Account s                       | Amount Outstandin g                    | No. of Account s                                             | Amount Outstanding                                           |
| 1     | ALLAHABAD BANK            | 173456                                 | 3326.00                                | 2653                                                         | 412.00                                                       |
| 2     | ANDHRA BANK               | 358891                                 | 4510.92                                | 4008                                                         | 517.66                                                       |
| 3     | BANK OF BARODA            | 441932                                 | 7852.74                                | 20105                                                        | 2454.82                                                      |
| 4     | BANK OF INDIA             | 813697                                 | 12119.84                               | 45743                                                        | 5414.50                                                      |
| 5     | BANK OF MAHARASHTRA       | 7674                                   | 152.92                                 | 223                                                          | 31.65                                                        |
| 6     | CANARA BANK               | 824046                                 | 16691.83                               | 48898                                                        | 6447.85                                                      |
| 7     | CENTRAL BANK OF INDIA     | 364054                                 | 8976.75                                | 21942                                                        | 3878.30                                                      |
| 8     | CORPORATION BANK          | 4356                                   | 81.68                                  | 267                                                          | 39.27                                                        |
| 9     | DENA BANK                 | 123002                                 | 900.68                                 | 4355                                                         | 386.93                                                       |
| 10    | IDBI BANK LIMITED         | 254634                                 | 4034.51                                | 7584                                                         | 1028.04                                                      |
| 11    | INDIAN BANK               | 597910                                 | 4335.49                                | 4692                                                         | 1141.26                                                      |
| 12    | INDIAN OVERSEAS BANK      | 202016                                 | 3172.65                                | 9545                                                         | 1648.31                                                      |
| 13    | ORIENTAL BANK OF COMMERCE | 18050                                  | 352.52                                 | 361                                                          | 29.60                                                        |
| 14    | PUNJAB AND SIND BANK      | 68655                                  | 84.33                                  | 2015                                                         | 309.54                                                       |
| 15    | PUNJAB NATIONAL BANK      | 613312                                 | 10262.52                               | 31450                                                        | 3327.10                                                      |
| 16    | SYNDICATE BANK            | 588303                                 | 9954.68                                | 25951                                                        | 3691.65                                                      |
| 17    | UCO BANK                  | 157729                                 | 1601.74                                | 2589                                                         | 262.26                                                       |
| 18    | UNION BANK OF INDIA       | 520320                                 | 8136.49                                | 8601                                                         | 1035.00                                                      |
| 19    | UNITED BANK OF INDIA      | 66358                                  | 40.43                                  | 2166                                                         | 21.68                                                        |
| 20    | VIJAYA BANK               | 197700                                 | 3673.64                                | 21505                                                        | 2697.72                                                      |
| 21    | STATE BANK OF INDIA       | 1187507                                | 31971.76                               | 98339                                                        | 12716.23                                                     |
|       | PUBLIC SECTOR BANKS       | 7583602                                | 128908.117                             | 362992                                                       | 47491.3762                                                   |

Source: As reported by Public Sector Banks

|       |                           | Mar-20                                 | Mar-20                                 | Mar-20                                                       | Mar-20                                                       |
|-------|---------------------------|----------------------------------------|----------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|
| S. No | Bank Name                 | COLLATERAL FREE LOANS UPTO RS. 10 LAKH | COLLATERAL FREE LOANS UPTO RS. 10 LAKH | COLLATERAL FREE LOANS ABOVE RS. 10 LAKH AND UPTO RS. 25 LAKH | COLLATERAL FREE LOANS ABOVE RS. 10 LAKH AND UPTO RS. 25 LAKH |
|       |                           | No. of Accounts                        | Amount Outstanding                     | No. of Accounts                                              | Amount Outstanding                                           |
| 1     | ALLAHABAD BANK            | 170865                                 | 3356.00                                | 2688                                                         | 441.00                                                       |
| 2     | ANDHRA BANK               | 301826                                 | 4238.29                                | 4163                                                         | 519.98                                                       |
| 3     | BANK OF BARODA            | 718114                                 | 12220.51                               | 51487                                                        | 6047.39                                                      |
| 4     | BANK OF INDIA             | 852375                                 | 13770.66                               | 46688                                                        | 5520.98                                                      |
| 5     | BANK OF MAHARASHTRA       | 6013                                   | 109.90                                 | 461                                                          | 61.88                                                        |
| 6     | CANARA BANK               | 836905                                 | 18201.00                               | 51993                                                        | 6703.00                                                      |
| 7     | CENTRAL BANK OF INDIA     | 106996                                 | 2165.66                                | 3885                                                         | 379.30                                                       |
| 8     | CORPORATION BANK          | 7694                                   | 169.33                                 | 499                                                          | 70.67                                                        |
| 9     | DENA BANK                 | Merged with Bank of Baroda             | Merged with Bank of Baroda             | Merged with Bank of Baroda                                   | Merged with Bank of Baroda                                   |
| 10    | IDBI BANK LIMITED         | IDBI Bank Privatized                   | IDBI Bank Privatized                   | IDBI Bank Privatized                                         | IDBI Bank Privatized                                         |
| 11    | INDIAN BANK               | 51618                                  | 1125.00                                | 5569                                                         | 748.00                                                       |
| 12    | INDIAN OVERSEAS BANK      | 191266                                 | 3266.51                                | 9101                                                         | 1570.16                                                      |
| 13    | ORIENTAL BANK OF COMMERCE | 235752                                 | 4019.84                                | 15691                                                        | 1645.39                                                      |
| 14    | PUNJAB AND SIND BANK      | 74660                                  | 1347.46                                | 7152                                                         | 944.99                                                       |
| 15    | PUNJAB NATIONAL BANK      | 575808                                 | 9739.74                                | 29420                                                        | 3048.73                                                      |
| 16    | SYNDICATE BANK            | 553395                                 | 10111.77                               | 27920                                                        | 3563.77                                                      |
| 17    | UCO BANK                  | 242171                                 | 2752.56                                | 3080                                                         | 350.05                                                       |
| 18    | UNION BANK OF INDIA       | 562469                                 | 9085.55                                | 7872                                                         | 1029.22                                                      |
| 19    | UNITED BANK OF INDIA      | 130030                                 | 329.52                                 | 2846                                                         | 71.16                                                        |
| 20    | VIJAYA BANK               | Merged with Bank of Baroda             | Merged with Bank of Baroda             | Merged with Bank of Baroda                                   | Merged with Bank of Baroda                                   |
| 21    | STATE BANK OF INDIA       | 1124805                                | 34137.71                               | 88159                                                        | 11112.66                                                     |
|       | PUBLIC SECTOR BANKS       | 6742762                                | 130147.005                             | 358674                                                       | 43828.33454                                                  |

Source: As reported by Public Sector Banks

|       |                       | Mar-21                                 | Mar-21                                 | Mar-21                                                       | Mar-21                                                       |
|-------|-----------------------|----------------------------------------|----------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|
| S. No | Bank Name             | COLLATERAL FREE LOANS UPTO RS. 10 LAKH | COLLATERAL FREE LOANS UPTO RS. 10 LAKH | COLLATERAL FREE LOANS ABOVE RS. 10 LAKH AND UPTO RS. 25 LAKH | COLLATERAL FREE LOANS ABOVE RS. 10 LAKH AND UPTO RS. 25 LAKH |
|       |                       | No. of Accounts                        | Amount Outstanding                     | No. of Accounts                                              | Amount Outstanding                                           |
| 1     | STATE BANK OF INDIA   | 1907420                                | 28653.61                               | 92120                                                        | 12060.50                                                     |
| 2     | BANK OF BARODA        | 996384                                 | 17268.87                               | 64436                                                        | 8536.17                                                      |
| 3     | BANK OF INDIA         | 1273410                                | 17261.53                               | 48310                                                        | 5906.13                                                      |
| 4     | BANK OF MAHARASHTRA   | 19250                                  | 162.14                                 | 1457                                                         | 124.77                                                       |
| 5     | CANARA BANK           | 1548910                                | 19335                                  | 64751                                                        | 9020                                                         |
| 6     | CENTRAL BANK OF INDIA | 101769                                 | 1979.35                                | 3524                                                         | 358.20                                                       |
| 7     | INDIAN BANK           | 82366                                  | 1846.26                                | 8437                                                         | 1077.80                                                      |
| 8     | INDIAN OVERSEAS BANK  | 157584                                 | 2807.56                                | 7994                                                         | 1386.10                                                      |
| 9     | PUNJAB AND SIND BANK  | 112575                                 | 1550.95                                | 3260                                                         | 439.79                                                       |
| 10    | PUNJAB NATIONAL BANK  | 1876814                                | 22577.75                               | 70050                                                        | 8228.89                                                      |
| 11    | UCO BANK              | 363534                                 | 3819.61                                | 4674                                                         | 608.34                                                       |
| 12    | UNION BANK OF INDIA   | 1532947                                | 17829.12                               | 30319                                                        | 3600.72                                                      |
|       | PUBLIC SECTOR BANKS   | 9972963                                | 135091.62                              | 399332                                                       | 51347.27                                                     |

Source: As reported by Public Sector Banks

|       |                       | Mar-22                                 | Mar-22                                 | Mar-22                                                       | Mar-22                                                       |
|-------|-----------------------|----------------------------------------|----------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|
| S. No | Bank Name             | COLLATERAL FREE LOANS UPTO RS. 10 LAKH | COLLATERAL FREE LOANS UPTO RS. 10 LAKH | COLLATERAL FREE LOANS ABOVE RS. 10 LAKH AND UPTO RS. 25 LAKH | COLLATERAL FREE LOANS ABOVE RS. 10 LAKH AND UPTO RS. 25 LAKH |
|       |                       | No. of Accounts                        | Amount Outstanding                     | No. of Accounts                                              | Amount Outstanding                                           |
| 1     | STATE BANK OF INDIA   | 1861087                                | 28297.68                               | 88247                                                        | 11357.86                                                     |
| 2     | BANK OF BARODA        | 976321                                 | 16680.16                               | 47483                                                        | 5998.39                                                      |
| 3     | BANK OF INDIA         | 1361995                                | 19051.4247                             | 47461                                                        | 5760.13                                                      |
| 4     | BANK OF MAHARASHTRA   | 19219                                  | 388.75                                 | 2576                                                         | 360.64                                                       |
| 5     | CANARA BANK           | 1556549                                | 20165.81                               | 70696                                                        | 9663.5                                                       |
| 6     | CENTRAL BANK OF INDIA | 195163                                 | 2898.45                                | 6572                                                         | 758.78                                                       |
| 7     | INDIAN BANK           | 341887                                 | 4804.00                                | 9633                                                         | 1405.89                                                      |
| 8     | INDIAN OVERSEAS BANK  | 177288                                 | 3169.71                                | 8791                                                         | 1516.87                                                      |
| 9     | PUNJAB AND SIND BANK  | 119913                                 | 1833.44                                | 3927                                                         | 512.79                                                       |
| 10    | PUNJAB NATIONAL BANK  | 1470532                                | 23271.10                               | 65481                                                        | 7683.97                                                      |
| 11    | UCO BANK              | 347822                                 | 4049.06                                | 5908                                                         | 735.12                                                       |
| 12    | UNION BANK OF INDIA   | 1379201                                | 16513.87                               | 60111                                                        | 16275.92                                                     |
|       | PUBLIC SECTOR BANKS   | 8830656                                | 141123.46                              | 369403                                                       | 62029.86                                                     |

Source: As reported by Public Sector Banks

|       |                       | Mar-23                                 | Mar-23                                 | Mar-23                                                       | Mar-23                                                       |
|-------|-----------------------|----------------------------------------|----------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|
| S. No | Bank Name             | COLLATERAL FREE LOANS UPTO RS. 10 LAKH | COLLATERAL FREE LOANS UPTO RS. 10 LAKH | COLLATERAL FREE LOANS ABOVE RS. 10 LAKH AND UPTO RS. 25 LAKH | COLLATERAL FREE LOANS ABOVE RS. 10 LAKH AND UPTO RS. 25 LAKH |
|       |                       | No. of Accounts                        | Amount Outstanding                     | No. of Accounts                                              | Amount Outstanding                                           |
| 1     | STATE BANK OF INDIA   | 992454                                 | 17406.90                               | 54753                                                        | 6869.33                                                      |
| 2     | BANK OF BARODA        | 1366475                                | 21543.43                               | 44062                                                        | 5372.751826                                                  |
| 3     | BANK OF INDIA         | 63351                                  | 628.02                                 | 4303                                                         | 665.1                                                        |
| 4     | BANK OF MAHARASHTRA   | 1520241                                | 22783.02                               | 82389                                                        | 11206.03                                                     |
| 5     | CANARA BANK           | 383727                                 | 3645.58                                | 4371                                                         | 475.23                                                       |
| 6     | CENTRAL BANK OF INDIA | 1236846                                | 12732.44                               | 68404                                                        | 8749.87                                                      |
| 7     | INDIAN BANK           | 295663                                 | 5855.79                                | 16292                                                        | 2792.94                                                      |
| 8     | INDIAN OVERSEAS BANK  | 1347599                                | 25023.00                               | 67318                                                        | 7628                                                         |
| 9     | PUNJAB AND SIND BANK  | 117222                                 | 1895.97                                | 3904                                                         | 491.63                                                       |
| 10    | PUNJAB NATIONAL BANK  | 1800312                                | 27124.87                               | 107679                                                       | 13247.23053                                                  |
| 11    | UCO BANK              | 412268                                 | 5781.9                                 | 8345                                                         | 1037.25                                                      |
| 12    | UNION BANK OF INDIA   | 1464909                                | 20351.91                               | 72296                                                        | 18570.6                                                      |
|       | PUBLIC SECTOR BANKS   | 11001067                               | 164772.83                              | 534116                                                       | 77105.96                                                     |

Source: As reported by Public Sector Banks