Economic Escalations By MSME
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Changing the definition of MSME is the most historical and remarkable decision for the Indian economy taken by the government under the leadership of PM Narender Modi. https://msme.gov.in/sites/default/files/IndianGazzate_0.pdf
- In the micro-industry, the criteria were the investment in plant and machinery equipment of Rs 25 lakh but now under the new definition, we have increased it to Rs 1 crore which is four times more. Regarding turnover, it was Rs 10 lakh earlier and now we have taken it Rs 5 crore.
- Under small industry, the investment criteria have been raised to Rs 10 crore from Rs 5 crore and turnover to Rs 15 crore from Rs 2 crore.
- For the medium industries where the investment was Rs 10 crore and now risen to Rs 50 crore and turnover to Rs 250 crore from Rs 5 crore.
Hitherto the MSME has been contributing around 48% to the economy and would shoot up to 60% in 2 years, says Nitin Gadkari, Minister of MSME in the government of India. MSME sector which employs 11 crores jobs would rise to 25-40 crores in the upcoming years with various opportunities to the people living the rural areas. India has the availability of all types of technology and fully competent people. MSME department will contribute up to 15 crores of equity. Encouraging small industries to reduce costs and upgrade the technology for better product without any compromise with the quality. Boosting the economy with skilled manpower is the utmost challenge to the MSME.
The Indian industry is not depending on Chinese investment, says Minister of Road & Transport and MSMEs.
Ensuring that Indian MSMEs also become a part of the global supply chain, the Government of India and World Bank ink 750 million USD agreement for the MSME Emergency Response Program. It will address the immediate liquidity and credit need of some 1.5 million viable MSMEs to help them withstand the impact of the current shock and protect millions of jobs.
Numerous amount of foreign investment proposals are been approached in recent months. But due to the conditions prevailing at the LAC with China, no future investment is closely held. India already has the ability to produce what it imports from China. Engineering expertise and steel power, we have it all. We can get a low-cost capital through FDI. Reinforcement shall be provided to those who have a good track record in export, bank turnover, income tax, and GST. Enterprises shall be ranked on the above basis and this will help to grow. Taking, for instance, India manufactures 5 lakh PPE Kits per day, and now Finance Ministry stated the permission to export to different parts of the world.
Automobile Industry is creating maximum employment in the nation with Bajaj and TVS scooters exporting 50% of its total production. A little push to the startup’s and emerging entrepreneurs will help the different sectors of the nation grow immensely. All types of the facility will be available to them and that is the most important thing.
Major push is driven by the App Innovation Challenge https://www.indiatoday.in/education-today/news/story/aatmanirbhar-bharat-app-innovation-challenge-eligibility-selection-prizes-how-to-apply-1697642-2020-07-06 which is helping the younger generation seeks more interest into technology and step out in global economy. Big population is the big strength of the nation!