Lok Sabha Question No. 971 (UNSTARRED), answered on 2024-02-08
Subject: Contribution of MSME Sector in GDP
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Balashowry Vallabbhaneni

- 971.

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UN STARRED QUESTION No. 971 TO BE ANSWERED ON 08.02.2024

## CONTRIBUTION OF MSME SECTOR IN GDP

SHRI BALASHOWRY VALLABHANENI:

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

- (a) the contribution of Micro, Small and Medium Enterprises (MSMEs) sector to Gross Domestic Product (GDP) and manufacturing output during the last five years and in the first three quarters of the current fiscal;
- (b) the  efforts  being  made  to  increase  its  contribution  to  GDP  and  manufacturing  output  to increase employment opportunities; and
- (c) the steps taken/proposed to be taken to bring all unregistered MSMEs under Udyam Portal?

## ANSWER

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

- (a): As  per  the  latest  information  received  from  the  Ministry  of  Statistics  &  Programme Implementation, share of MSME Gross Value Added (GVA) in all India GDP and Share of MSME Manufacturing Output in All India Manufacturing Output (in %) are as follows:
- (b):        The  Ministry  of  Micro,  Small  and  Medium  Enterprises  implements  various  schemes  and programmes  aimed at  support  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. These schemes/programmes include MSME Champions Scheme, Credit Guarantee Fund Trust for Micro and Small  Enterprises  (CGTMSE),  Prime  Minister's  Employment  Generation  Programme  (PMEGP), Micro  and  Small  Enterprises  -  Cluster  Development  Programme  (MSE-CDP)  and  Raising  and Accelerating MSME Performance (RAMP).

| Year    | Share of MSME GVA in All India GDP (in %)   | Share of MSME Manufacturing Output in All India Manufacturing Output (in %)   |
|---------|---------------------------------------------|-------------------------------------------------------------------------------|
| 2017-18 | 29.7%                                       | 37.4%                                                                         |
| 2018-19 | 30.5%                                       | 36.9%                                                                         |
| 2019-20 | 30.5%                                       | 36.6%                                                                         |
| 2020-21 | 27.2%                                       | 36.9%                                                                         |
| 2021-22 | 29.1%                                       | 36.2%                                                                         |

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

- 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. No global tenders for procurement up to Rs. 200 crore
- iv. Roll  out  of  Raising  and  Accelerating  MSME  Performance  (RAMP)  programme  with  an outlay of Rs. 6,000 crore over 5 years.
- v. 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.
- vi. 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.
- vii. Launch of 'PM Vishwakarma' Scheme on 17.09.2023 to provide benefits to the traditional artisans and craftspeople engaged in 18 trades.
- viii. Samadhaan Portal for monitoring of Out Standing dues to MSEs from buyers of goods and services w.e.f. 30.10.2017.
8. (c): The Udyam Registration Portal was launched on 01.07.2020 to facilitate ease of registration for  MSMEs  and  access  to  all  the  Schemes  and  benefits.  The  registration  process  is  free  of  cost, paperless and digital. As on 05.02.2024, more than 3.64 crore MSMEs with an employment of more than  16.86  crore,  have  registered  on  Udyam  Portal  (this  includes  the  Informal  Micro  Enterprises (IMEs)  registered  on  Udyam  Assist  Platform  (UAP)).  The  Government  has  also  launched 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. The  following  steps  have  been  taken  by  the government to promote MSMEs:
- I. New revised criteria for classification of MSMEs w.e.f. 01.07.2020.
- II. "Udyam Registration" for MSMEs, for Ease of Doing Business w.e.f. 01.07.2020.
- III. Inclusion  of  Retail  and  Wholesale  trades as  MSMEs  w.e.f.  02.07.2021  for  availing  the benefits of Priority Sector Lending.
- IV. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs w.e.f. 18.10.2022.

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