Lok Sabha Question No. 2050 (UNSTARRED), answered on 2023-12-14
Subject: Contribution of MSMEs to GDP
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Debasree Chaudhuri

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UN STARRED QUESTION No. 2050 TO BE ANSWERED ON 14.12.2023

## CONTRIBUTION OF MSMEs TO GDP

2050. MS. DEBASREE CHAUDHURI:

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

- (a) the contribution of the Micro, Small and Medium Enterprises (MSMEs) sector to Gross Domestic Product (GDP) of the country and share in export during the last five years and the current year;
- (b) the details of employment generated and people employed in the MSMEs sector during the said period; and
- (c) the steps taken and achievements made in the aforesaid sector during each of the last three years and the current year?

## ANSWER

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

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

| Year    | Share of MSME Gross Value Added (GVA) in all India Gross Domestic Product (GDP)   |
|---------|-----------------------------------------------------------------------------------|
| 2017-18 | 29.69%                                                                            |
| 2018-19 | 30.50%                                                                            |
| 2019-20 | 30.48%                                                                            |
| 2020-21 | 27.24%                                                                            |
| 2021-22 | 29.15%                                                                            |

As per the information culled out from the Data Dissemination Portal of Directorate General of Commercial Intelligence and Statistics (DGCIS), the share of export of MSME specified products in all India exports are as follows:

| Year     | %share of Export of MSME related products in All India Export   |
|----------|-----------------------------------------------------------------|
| 2018-19  | 48.10%                                                          |
| 2019-20  | 49.77%                                                          |
| 2020-21  | 49.35%                                                          |
| 2021-22  | 45.03%                                                          |
| 2022-23  | 43.59%                                                          |
| 2023-24* | 45.56%                                                          |

- (b): As  on  08.12.2023,  the  total  employment  recorded  on  the  Udyam  Registration  Portal  (since 01.07.2020  to  08.12.2023)  is  15.55  crore  (including  informal  micro  enterprises  registered  on  Udyam Assist Platform).
- (c): The Ministry of Micro, Small and Medium Enterprises (MSME) implements various schemes and programmes aimed at promotion and development of MSME  Sector in the country. 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).

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. 01.04.2023) 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 revised criteria for classification of MSMEs.
- 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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