Lok Sabha Question No. 2944 (UNSTARRED), answered on 2024-08-08
Subject: Contribution of MSME Sector in GDP
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Navaskani K

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

## LOK SABHA UN STARRED QUESTION No. 2944

TO BE ANSWERED ON 08.08.2024

## CONTRIBUTION OF MSME SECTOR IN GDP

## 2944.

SHRI NAVASKANI K:

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

- (a) the contribution of MSME sector in the overall Gross Domestic Product (GDP) of the country;
- (b) the details of growth registered by MSMEs during each of the last three years and the current year;
- (c) whether any centrally funded schemes are available to improve growth of MSMEs in Tamil Nadu and if so, the details thereof;
- (d) whether the Government has fixed any target for increasing total number of entrepreneurs in MSME sector in Tamil Nadu during the last three  years and the  current  year  and  if  so,  the  details thereof; and
- (e) the steps taken/proposed to be taken by the Government to achieve the growth targets fixed during the next three years?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

(a) and (b): As  per  the  latest  information  received  from  the  Ministry  of  Statistics  &  Programme Implementation, the share of MSME Gross Value Added (GVA) in all India Gross Domestic Product (GDP) during last three years are as follows:

| Year    |   Share of MSME GVA in All India GDP (in %) |
|---------|---------------------------------------------|
| 2020-21 |                                        27.3 |
| 2021-22 |                                        29.6 |
| 2022-23 |                                        30.1 |

(c) to (e): Promotion  and  development  of  enterprises  is  a  State  subject.  Government  helps  in establishment  of  MSMEs  in  States/UTs  through  its  various  schemes,  programmes  and  policy initiatives  for  promotion  and  development  of  MSMEs  across  the  country, including  Tamil  Nadu . These schemes/ programmes 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 (PMSS), Raising and Accelerating MSME Performance  (RAMP),  International  Cooperation  scheme,  Tool  Rooms,  Technology  Centre System Programme (TCSP), National SC/ST Hub (NSSH), MSME Champions, PM Vishwakarma etc.

Further Government has taken a number of initiatives to support the MSME Sector. Some of these are as following:

- i. Collateral free loan up to a limit of Rs. 500 lakh (w.e.f. 01.04.23) to MSEs with guarantee coverage up to 85 % for various categories of loan through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) under Credit Guarantee Scheme.
- ii. Rs.  50,000  crore  equity  infusion  through  Self  Reliant  India  Fund.  This  scheme  has  a provision for corpus of Rs.10,000 crore from Government of India.
- iii. New criteria for classification of MSMEs with higher threshold, based on Investment and Turnover, to widen the ambit of the MSME sector.
- iv. New registration of MSMEs through ''Udyam Registration'' for Ease of Doing Business.
- v. No global tenders for procurement up to Rs. 200 crore
- vi. Inclusion of retail and whole sale trades as MSMEs w.e.f. 02.07.2021.
- 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. Integration of Udyam Portal and National Career Service (NCS) of Ministry of Labour & Employment, as an outcome registered MSMEs are able to search for jobseekers on NCS.
- x. Under Vivad se Vishwas - I, relief by way of refund of 95% of the deducted performance security,  bid  security  and  liquidated  damages  was  provided  to  MSMEs.  Relief  was  also provided to MSMEs debarred for default in execution of contracts.
- xi. Launch of Udyam Assist Platform (UAP) to bring the Informal Micro Enterprises (IMEs) under the formal ambit for availing the benefit under Priority Sector Lending (PSL).
- xii. Launch of 'PM Vishwakarma' Scheme on 17.09.2023 to provide benefits to the traditional artisans and craftspeople engaged in 18 trades.

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