look news india
The Central Government has come up with a plan to streamline and strengthen the incentive scheme for Micro, Small and Medium Enterprises (MSME). If the Modi government is elected for the third time in the ongoing Lok Sabha elections in the country, then implementing this scheme will be their priority.
Among the new measures being considered will be specific incentives to manufacturers for domestic procurement from MSMEs under Production Linked Incentive (PLE) schemes, which will leave room for improvement. The government is considering rationalizing all MSME subsidy and credit link schemes. The reforms will incorporate some existing elements to make the MSME incentive scheme more easily and widely available. Because the process of availing benefits under the current scheme is quite difficult. 6,40,00,000 strong MSMEs are the backbone of India's economy. MSMEs in India employ 11,00,00,000 people. Or the share of MSMEs in the country's labor force is 23 percent. After agriculture, MSME is the second largest employer in India.
A look at MSME participation
The share of MSMEs in the country's labor force is 23%.
The share of MSMEs in GDP is 27%.
The share of MSMEs in total manufacturing output is 38%.
The share of MSMEs in the country's exports is 45%.
NITI Aayog's recommendations
The government should create a stimulus package to substantially increase export credit guarantees.
A single market place has been suggested, where all providers of export credit can compete for business and help reduce costs for MSMEs.
What improvements will be made?
Under Product Linked Incentive (PLE) schemes, specific incentives will be given to manufacturers for domestic procurement from MSMEs.
All MSME subsidy and credit link schemes will be rationalized
Some existing things will be improved so that the benefits of the incentive scheme can be availed widely and easily.
New reforms likely to boost MSME supply chain