Lok Sabha Question No. 1565 (UNSTARRED), answered on 2025-02-13
Subject: Contribution of MSMEs in Industrialisation
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Smt. Bharti Pardhi, Shri Shrirang Appa Chandu Barne, Shri Dharmendra Yadav

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 1565 TO BE ANSWERED ON 13.02.2025

## CONTRIBUTION OF MSMEs IN INDUSTRIALISATION

## 1565. SMT. BHARTI PARDHI:

SHRI DHARMENDRA YADAV:

SHRI SHRIRANG APPA CHANDU BARNE:

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

- (a) whether the MSMEs play an important role in reducing regional imbalances by contributing to the industrialization of rural and backward areas;
- (b) if so, the details of the policy formulated by the Government to ensure the industrialization of rural and backward areas;
- (c) whether  the  MSME  sector  is  facing  difficulties  in  attaining  desired  growth  and  become medium-sized and subsequently large companies;
- (d) if so, the details of the challenges being faced by the MSME sector;
- (e) whether  MSMEs need a nine-fold  increase  in  digitally  skilled  workers  by  2025  to  compete globally;
- (f) if so, the reaction of the Government thereto; and
- (g) the steps taken by the Government to address the challenges being faced by the MSME sector?

## ANSWER

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

(a) & (b): Within  4.5  years  of  adoption  of  the  revised  definition  of  enterprise  and  launch  of Udyam Registration Portal, over 5.83 crore enterprises have already registered as Micro, Small and Medium Enterprises (MSMEs) across the country, including in rural and backward areas. Out of these, 1.21 crore enterprises are engaged in manufacturing activity. As per the data for 2022-23, the MSME sector contributed 30.1% to GDP and 36% to manufacturing output. Further, as per the data for 202324,  the  MSME  sector  contributed  45%  to  exports.  To  create  an  enabling,  inclusive  and  business friendly environment for industrial growth in the country, Department for Promotion of Industry and Internal Trade has taken a number of measure like PM Gati Shakti National Master Plan and National Logistics Policy, Production Linked Incentive Scheme, Startup India, etc.

The Central Government supplements the efforts of the State/UT Governments through various schemes, programmes and policy initiatives for development and promotion of MSMEs in the country, including  for  rural  areas  which  inter  alia  includes  various  schemes  and  programmes  such  as  Prime Minister's  Employment  Generation  Programme,  Credit  Guarantee  Scheme  for  Micro  and  Small Enterprises, Micro and Small Enterprises -Cluster Development Programme, Raising and Accelerating MSME Performance, SRI Fund, PM Vishwakarma and MSME Champions Scheme, etc.

(c) to (g): In order to address the challenges of MSME sector, which inter alia includes access to finance, skilling and technology, the Government of India has taken a number of steps to revive and rebuild the MSMEs. Some of the measures are as under:

- i. Launch of Udyam Assist platform on 11.01.2023 to bring Informal Micro Enterprises under the formal ambit for availing benefits under Priority Sector Landing.
- ii. Non-tax  benefits  extended  for  3  years  in  case  of  an  upward  change  in  status  of  MSMEs  to encourage MSME sector in attaining desired growth and grow in size.
- iii. Rs. 50,000 crore equity infusion through Self Reliant India Fund.
- iv. Rs. 5 lakh crore Emergency Credit Line Guarantee Scheme, for businesses, including MSMEs was operational till 31.03.2023. As per a research report dated 23.01.2023 of the State Bank of India  on  Emergency  Credit  Line  Guarantee  Scheme,  almost  14.6  lakh  MSME  accounts,  of which about 98.3% of the accounts were in the MSEs categories, were saved from slipping into non-performing asset classification.
- v. Grievances  of  MSMEs  are  being  addressed  through  CHAMPIONS  Portal  launched  on 01.06.2020 by the Ministry of MSME.
- vi. Under  the  PM  Vishwakarma  Scheme,  the  components  include  recognition  through  PM Vishwakarma Certificate and ID Card, Skill Upgradation, Toolkit  Incentive,  Credit  Support, Incentive  for  Digital  Transactions  and  Marketing  Support.  After  successful  registration,  the beneficiary is provided basic skill training. Upon successful completion of the skill training, the beneficiary becomes eligible for other scheme benefits.
- vii. Under Entrepreneurship Skill Development Programme basic and advanced entrepreneurship training  is  provided  to  help  entrepreneurs  improve  their  personal  entrepreneurial  skills  and upscale their business or enterprise.
- viii. Further,  Udyam  Registration  portal  has  been  integrated  with  portals  of  National  Career Services, e-Shram of Ministry of Labour & Employment and Skill India Digital Portal.
- ix. Further, under the Tool Rooms & Technical Institutions, the Ministry of MSME has set up 18 Tool Rooms & Technical Institutions known as Technology Centres to support MSMEs with the relevant technologies.

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