The MSME sector is a vital component of the Indian economy, contributing significantly to employment generation, exports, and industrial output. In recent years, the government has taken several initiatives to promote the growth and development of the MSME sector in India. Here are some of the recent initiatives:
- Atmanirbhar Bharat Abhiyan: The Atmanirbhar Bharat Abhiyan, launched in 2020, aims to make India self-reliant and promote the growth of domestic industries, including the MSME sector. The initiative includes several measures such as providing collateral-free loans to MSMEs, restructuring of MSME loans, and equity infusion through a fund of funds.
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): The CGTMSE was established by the government to provide credit guarantees to MSMEs, enabling them to access collateral-free credit from banks and financial institutions. The government has increased the guarantee cover under the scheme from 75% to 80%, thereby providing greater credit availability to MSMEs.
- Cluster Development Programme: The Cluster Development Programme aims to enhance the competitiveness of MSMEs by promoting cluster-based development. The programme provides financial assistance for the development of common infrastructure facilities, technology upgradation, and marketing support to MSME clusters.
- National Small Industries Corporation (NSIC): The NSIC provides several services to MSMEs, including marketing support, technology support, and credit facilitation. The government has expanded the role of NSIC by providing support for the development of new MSMEs, enhancing their access to markets, and promoting innovation.
- Udyog Aadhaar Memorandum (UAM): The Udyog Aadhaar Memorandum is a registration process for MSMEs, which enables them to access several government schemes and benefits. The registration process is simple and can be completed online, thereby enabling MSMEs to access the benefits of the scheme quickly.
Overall, these initiatives have helped in promoting the growth and development of the MSME sector in India. The government has also announced several other measures, such as setting up of a dedicated MSME ministry, simplification of labour laws, and reduction in compliance burden, which are expected to further enhance the growth of the sector.