Lok Sabha Question No. 2923 (UNSTARRED), answered on 2024-08-08
Subject: Support to SMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri E T Mohammed Basheer

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

## LOK SABHA UNSTARRED QUESTION NO. 2923

TO BE ANSWERED ON 08.08.2024

## SUPPORT TO SMEs

## 2923. SHRI  E T MOHAMMED BASHEER:

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

- (a) the manner in which the Government is supporting Small and Medium Enterprises (SMEs) to boost their competitiveness and participation in global value chains;
- (b) the details of the policies that are being implemented to attract Foreign Direct Investment (FDI) in manufacturing and high-tech industries;
- (c) the manner in which the Government addresses the issue of high logistics costs and improving infrastructure to make exports more competitive; and
- (d) the measures being taken to facilitate ease of doing business and reduce compliance burden for industries?

## ANSWER

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

- (a): In  order  to  boost  the  competitiveness  of  Indian  industry  including  Small  and  Medium Enterprises  and  increase  their  participation  in  global  value  chains,  Government  of  India  has  taken various initiatives, namely, Make in India Programme, Promotion of Ease of Doing Business, improved availability of credit through MUDRA, Stand up India etc. Further, Ministry of MSME has specifically established 60 Export Facilitation Centers (EFCs) across the country to provide requisite mentoring and handholding support to Micro and Small Enterprises (MSEs). Under International Cooperation Scheme, financial assistance is provided to MSMEs for entering export market by facilitating their participation in international exhibitions/fairs held abroad and reimbursement of various costs involved in export of goods  and  services.  In  addition,  Ministry  of  MSME  is  also  providing  assistance  through  various schemes namely, MSME Champions Scheme, Raising and Accelerating MSME Performance (RAMP) Scheme, Credit linked Capital Subsidy Technology Upgradation Scheme(CLCS-TUS), Micro & Small Enterprises-  Cluster  Development  Programme(MSE-CDP),  Technology  Centre  System  Programme (TCSP), Procurement and Marketing Schemes (PMS), etc.
- (b): To attract more FDI, the Government has put in place an investor friendly FDI policy, wherein most of the  sectors,  except  certain  strategically  important  sectors,  are  open  for  100%  FDI  under  the automatic  route.  The  Government  has  implemented  several  radical  and  transformative  FDI  reforms across  sectors  such  as  Defence,  Pension,  Other  Financial  Services,  Asset  reconstruction  Companies, Broadcasting,  Pharmaceuticals,  Single  Brand  Retail  Trading,  Construction  &  Development,  Civil Aviation,  Power  Exchanges,  e-commerce  activities,  Coal  Mining,  Contract  Manufacturing,  Digital Media, Insurance Intermediaries,  Insurance,  Petroleum & Natural Gas and Telecom, etc.  Further, the Government reviews the FDI policy on an ongoing basis and makes significant changes from time to time, to ensure that India remains an attractive & investor friendly destination.

(c): To  reduce  logistics  costs  and  improve  infrastructure,  Government  has  launched  the  PM GatiShakti National Master Plan(NMP) initiative on 13 October, 2021 and to complement it, National Logistics Policy  (NLP)  was  notified  in  September,  2022.While  the  development  of  integrated infrastructure development is addressed through the PM Gati Shakti NMP; efficiency in services (like processes, digital systems, and regulatory framework) and human resources is addressed by the NLP through  its  Comprehensive  Logistics  Action  plan  (CLAP).  These  initiatives  together  provide  a framework for creating a data-driven decision support mechanism for an efficient logistics ecosystem aimed at reducing logistics costs and enhancing logistics efficiency in the country.

(d): The Department for Promotion of Industry and Internal Trade (DPIIT) is the Nodal Department for  coordinating  the  initiatives  under  Ease  of  Doing  Business  (EoDB)  which  are  aimed  at  creating  a conducive business environment in India. These efforts are aimed to cover all sectors/industries of the economy, including Micro, Small and Medium Enterprises(MSMEs).DPIIT is the nodal Department for several  key initiatives including the Business Reform Action  Plan  (BRAP),  the  B-Ready  assessment, Jan  Vishwas  and  Reducing  Compliance  Burden  on  Businesses  and  Citizens.  These  initiatives  are designed to improve India's business eco system, attract investments, and foster economic growth by reducing bureaucratic hurdles and making the regulatory environment more conducive.

Further, for facilitating  Ease of Doing Business for MSMEs in India, Ministry of MSME has also launched Udyam registration Portal & Udyam Assist Platform for registration of MSMEs;

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