Lok Sabha Question No. 558 (UNSTARRED), answered on 2024-11-28
Subject: New Technologies and Investments  in MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Daggumalla Prasada Rao, Shri Bastipati Nagaraju

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

## LOK SABHA UNSTARRED QUESTION NO. 558 TO BE ANSWERED ON 28.11.2024

## NEW TECHNOLOGIES AND INVESTMENTS IN MSMEs

558. SHRI DAGGUMALLA PRASADA RAO: SHRI BASTIPATI NAGARAJU:

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

- (a) whether Government is planning to improve the MSME sector in terms of new technologies and investments and if so, the details thereof;
- (b) the  percentage  of  contribution  of  MSMEs  in  the  country's  total  exports  during  the  last  five years; and
- (c) whether the Government is making any special efforts to increase the contribution of MSMEs in the country's exports, and if so, the details thereof?

## ANSWER

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

- (a): The  Ministry  of  Micro,  Small  and  Medium  Enterprises  (MSMEs)  is  implementing  various schemes / programmes to improve the MSME sector in terms of new technologies and investments which inter -alia includes, MSME Champions Scheme, Credit Guarantee Fund Trust for Micro and Small Enterprises(CGTMSE), Prime Minister's Employment Generation Programme (PMEGP),SelfReliant  India  Fund,  Micro  and  Small  Enterprises  -  Cluster  Development  Programme  (MSE-CDP), Technology Centre Systems Programme etc. Besides, under the Startup India initiative of Department for Promotion of Industry and Internal Trade (DPIIT), the Government is implementing three flagship Schemes, namely, Startup India Seed Fund Scheme (SISFS), Fund of Funds for Startups (FFS) and Credit Guarantee Scheme for Startups (CGSS) to support startups at various stages of their business cycle.
- (b): The contribution of Micro, Small, and Medium Enterprises (MSMEs) to India's total exports over the past five years as per Directorate General of Commercial Intelligence and Statistics (DGCIS) is as under:

| Financial Year   | MSMEExport Contribution (%)   |
|------------------|-------------------------------|
| 2019-20          | 49.75%                        |
| 2020-21          | 49.35%                        |
| 2021-22          | 45.03%                        |
| 2022-23          | 43.59%                        |
| 2023-24          | 45.73%                        |

- (c): The Government has undertaken the following initiatives to boost MSME exports:
- i. International  Cooperation  Scheme  of  Ministry  of  MSME  Provides  financial  assistance  to MSMEs for participation in international trade fairs and exhibitions.
- ii. Export Credit Guarantee Scheme (ECGS ) of Ministry of MSME , ensures easy availability of credit to exporters and reduces risks associated with exports
- iii. The Interest Equalization Scheme on pre- and post-shipments of rupee export credit has also been extended to the MSME Sector up to 31-12-2024, with a total allocation of Rs. 12788 crores.
- iv. Assistance provided through several schemes to promote exports, namely, Trade Infrastructure for Export Scheme (TIES) and Market Access Initiatives (MAI) Scheme.
- v. The  Rebate  of  State  and  Central  Levies  and  Taxes  (RoSCTL)  Scheme  to  promote  labouroriented certain items of textiles sector export has been implemented since 07.03.2019.
- vi. A Common Digital Platform for Certificate of Origin has been launched to facilitate trade and increase Free Trade Agreement (FTA) utilization by exporters.
- vii. Districts  as  Export  Hubs  initiative  has  been  launched  by  identifying  products  with  export potential in each district, addressing bottlenecks for exporting these products and supporting local exporters/manufacturers to generate employment in the district.
- viii. The  government  has  launched  Trade  Connect  ePlatformon 11 th September  2024.  Trade connect  ePlatform  is  an  information  and  intermediation  platform  on  international  trade bringing together Indian Missions Abroad and officials from Department of Commerce and other organisations to provide comprehensive services for both new and existing exporters.

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