Govt focus to increase MSMEs' contribution to 50% of GDP
Published: Aug 11, 2020
By TIOLCORPLAWS News Service
NEW DELHI, AUG 11, 2020: While addressing a webinar yesterday on 'FICCI-SBI Atmanirbhar MSME Virtual Conclave', Mr Nitin Gadkari, Minister of MSME and Road Transport and Highways & Shipping, Govt of India, said, "Cooperative banks that are not included as a member lending institution under the Emergency Credit Line Guarantee Scheme (ECLGS) will be included as lenders for MSMEs, under a scheme being discussed in consultation with the RBI." He also urged the states to release payments due to micro, small and medium enterprises (MSMEs) within 45 days. "This will help bring liquidity, which will accelerate the economic growth of the country," he said. The minister emphasized that special focus towards export enhancement is the need of the hour, and there is also a need to focus on import substitution to replace imports with domestic production. He further urged the industry to identify the sectors heavily reliant on imports, particularly from China, and look for substitutes towards indigenous production to make India Atma Nirbhar. He added that the government aims to increase MSMEs' contribution to 50% of GDP and share of exports to 60% which help the sector create 50 million jobs in the next five years. Mr Gadkari said, "The government is formulating a special policy to generate employment in the rural areas and aims to increase the turnover of village industries and encourage medium scale units such as ago and food processing industries, handloom, and handicrafts."
