MSMEs produce 36.5% of India’s manufacturing output

India facing economic slowdown
There is a need to go back to the drawing board and review development issues with a fresh holistic approach.

Micro, small and medium enterprises accounted for 36.5% of the all India manufacturing gross value of output in the financial year 2016-17, the Rajya Sabha was informed. The country has 65 lakh registered MSMEs as on March 31, 2019, Union minister Nitin Gadkari informed the Rajya Sabha in a written reply on Monday.

The micro industries generated 5,87 lakh jobs in the financial year 2018-19 under the prime minister’s employment generation programme, the minister informed the Rajya Sabha. They created 3.87 lakh and 4.08 lakh jobs respectively in the previous two years.

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The Prime Minister’s Employment Generation Programme scheme has created an estimated 47 lakh jobs since its launch in 2008-09. Under the scheme, the government has provided Rs 12,902 crore margin money to 5.70 lakh micro enterprises till October 31, 2019. The PMEGP is a credit-linked subsidy programme for micro enterprises in cottage, khadi and village industry sectors. It offers loans up to Rs 25 lakh in the manufacturing sector and Rs 10 lakh in the service sector to traditional artisans and unemployed youth. It offers a subsidy of 15-35% to different sectors.

The PMEGP scheme conducts physical verification of all units between 24 months and before 36 months of their establishment. As per government data, 80% of PMEGP units are found to be functioning at the registered location.

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The MSME ministry has introduced a scheme of second financial assistance for the expansion of existing PMEGP/MUDRA units. The scheme offers up to Rs 1 crore financial assistance to manufacturing units and Rs 25 lakh to service/trading units with a subsidy component of 15- 20% for various categories.

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