Lok Sabha Question No. 1147 (UNSTARRED), answered on 2024-02-08
Subject: Challenges faced by MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Balashowry Vallabbhaneni

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

## LOK SABHA UNSTARRED QUESTION NO. 1147 TO BE ANSWERED ON 08.02.2024

## CHALLENGES FACED BY MSME SECTOR

## 1147. SHRI BALASHOWRY VALLABHANENI:

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

- (a) the details of share of budget allocated to major focused areas of MSME sector during 202223 and 2023-24;
- (b) the challenges faced by the MSME sector; and
- (c) the  measures taken/being taken by the Government to resolve the challenges including the uncharted  sectors  either  through  PM  Vishwakarma  programme  or  otherwise,  with  a  particular reference to Andhra Pradesh?

## ANSWER

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

(a) to (c): The  challenges  faced  by  the  MSME  sector  inter  alia  include  access  to  affordable credit,  technology,  informality,  lack  of  infrastructure,  shortage  of  skilled  manpower  and  access  to market.  To  mitigating  these  challenges,  the  Ministry  of  Micro,  Small  and  Medium  Enterprises implements various schemes for the benefit of MSMEs across the country including in the State of Andhra  Pradesh.  The schemes/programmes  inter  alia  include  Prime  Minister's  Employment Generation Programme (PMEGP), Credit Guarantee Scheme for Micro and Small Enterprises, Micro and Small  Enterprises-Cluster  Development Programme (MSE-CDP), MSME Champions scheme, International Cooperation Scheme, Procurement and Marketing Support Scheme (PMS) and National SC/ST Hub (NSSH).

There  has  been  a  significant  increase  in  the  budget  allocated  to  the  Ministry  of  MSME towards intervent for addressing these focus areas. The same for the FY 2022-23 and FY 2023-24 are given below.

| Financial Year   | Budget Estimates (Rs. in crore)   |
|------------------|-----------------------------------|
| 2022-23          | 21,422.00                         |
| 2023-24          | 22,137.95                         |

In  the  recent  past,  Government  has  taken  various  measures  in  the  areas  of  credit  support, formalization,  technological  assistance,  infrastructure  development,  skill  development  and  training and  market  assistance,  in  the  country  including  in  the  State  of  Andhra  Pradesh,  which  inter  alia include the following.

- (i) Rs.  5  lakh  crore  Emergency  Credit  Line  Guarantee  Scheme  for  business,  including MSMEs.
- (ii) Rs. 50,000 crore equity infusion through Self Reliant India Fund.
- (iii) Revised criteria for classification of MSMEs to promote investment.

- (iv) No global tenders for procurement up to Rs. 200 crores.
- (v) 'Udyam Registration' for MSMEs, for Ease of Doing Business w.e.f. 01.07.2020.
- (vi) Launching of  an  online  Portal  'Champions'  in  June,  2020  to  cover  many  aspects  of  egovernance including redressing grievances and handholding of MSMEs.
- (vii) Inclusion of Retail and Wholesale traders as MSMEs on 02.07.2021.
- (viii) Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
- (ix) Roll  out  of  Raising  and  Accelerating MSME Performance (RAMP) programme with an outlay of Rs. 6,000 crore over 5 years.
- (x) Launch  of  Udyam  Assist  Platform  (UAP)  on  11.01.2023  to  bring  the  Informal  Micro Enterprises (IMEs) under the formal ambit for availing the benefit under Priority Sector Lending (PSL).
- (xi) As  announced  in  Budget  2023-24,  Rs.  9,000  crore  has  been  infused  in  the  corpus  of CGTMSE to enable additional credit of Rs. 2 lakh crore with a reduced cost of credit.

For the promotion and development of the uncharted sectors like artisans and craftspeople in the  country,  The  PM  Vishwakarma  Scheme  was  launched  on  17.09.2023  to  provide  end-to-end support to artisans and craftspeople who work with their hands and tools. The Scheme components include recognition through PM Vishwakarma Certificate and ID Card, Skill Upgradation, Toolkit Incentive,  Credit  Support,  Incentive  for  Digital  Transactions  and  Marketing  Support.  Details  of registrations under the Scheme on the PM Vishwakarma portal, since the launch of the Scheme on 17.09.2023 upto 05.02.2024, in the State of Andhra Pradesh are given below.

| State          | Number of applications received   | Number of applications successfully registered   |
|----------------|-----------------------------------|--------------------------------------------------|
| Andhra Pradesh | 11,39,051                         | 44,827                                           |

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