Govt Schemes for MSME Sector Archives

Digitalisation To Play Key Role in Growth and Development of MSME Sector in India, Says Nitin Gadkari

With an aim to development of small businesses in the country, digitalization across areas like marketing and manufacturing would play a critical role, Micro, Small and Medium Enterprises Minister Nitin Gadkari said. The Minister also emphasised the need for technologies that can help expand economically viable MSMEs in the rural and tribal areas across the country. He also pointed out that MSMEs account for 30 percent of India’s GDP, 48 percent of the exports and have created 11 crore jobs. The government aims to take this to 40 percent GDP contribution, 60 percent exports, and create 5 crore new jobs.

“Digitalisation in MSMEs is the most important subject…digitalisation is a solution by which we can make our system transparent and time-bound,” he said at an event held by Microsoft. In his address, Gadkari noted that marketing is an important arena for MSMEs and a number of small companies that have started marketing online are seeing excellent results. He added that digitalization can play an important role for the manufacturing sector in enhancing processes, he said, urging the tech sector to collaborate with MSMEs to help them in these processes. He said the most important agenda for the government is development of MSMEs in the rural, agricultural, tribal areas and 115 aspirational districts.

“This area is where GDP contribution is very negligible…So we need to find technology which is useful for making economically viable MSMEs in the village, rural, agricultural and tribal area,” he noted. He added that while these areas have raw materials, a digital system that is result-oriented can be brought in that will create a win-win situation for all.

In an attempt to boost the Micro, Small and Medium Enterprises, Union MSME Minister Nitin Gadkari has inaugurated 50 artisan-based Scheme of Fund for Regeneration of Traditional Industries (SFURTI) clusters across over 18 States. At its launch the MSME Minister also said the central government is making efforts to establish at least five thousand MSME clusters under the SFURTI scheme. For the development of these clusters, the MSME Ministry spearheaded by Nitin Gadkari has funded Rs 85 Crore. Under the scheme, various small and medium scale traditional industries and artisans into clusters with the aim to improve their earnings and make them more competitive. MSME Credit Moves Towards Pre-Pandemic Levels, Witnesses a Growth of 5.7%: Report.

Gadkari also informed that the ministry is trying to fast track the approval process for the clusters, adding that these clusters would be helpful to farmers and craftspeople be independent. The clusters under the SFURTI scheme offers various programmes for the development of MSMEs including skill development, capacity building, creation of facilities such as common facility centres, rehousing facilities and marketing and e-commerce assistance to local industries. Indian SMEs Plan To Expand Businesses As Economy Revives, Restoration of Business Activities Likely To Gain Momentum Post COVID-19 Era: Survey.

Through these clusters more than 42 thousand artisans have been ensured continuous support and assistance in the traditional segments of muslin, khadi, coir, handicraft, handlooms, wood craft, leather, pottery, carpet weaving, bamboo, agro processing, tea and others. The SFURTI clusters have been inaugurated in several states including Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Nagaland, Odisha, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal.

So far as many as 371 such clusters have been funded by the government under the Scheme of Fund for Regeneration of Traditional Industries initiative. A total of Rs 888 Crore have been spend for its development by the centre. Nitin Gadkari also said that the government is looking to increase the share of MSME sector in the country’s GDP to 40 per cent from the current 30 per cent and share of exports to about 60 per cent from 48 per cent.