Blitz Bureau
NEW DELHI: Prime Minister Narendra Modi on March 4 said that the MSME (micro, small, and medium enterprises) sector is the backbone of India’s manufacturing and industrial growth and the Government is committed to nurturing and strengthening this sector to promote inclusive growth.
Addressing , via video conferencing, post-Budget webinar on MSMEs as an Engine of Growth; Manufacturing, Exports and Nuclear Energy Missions; Regulatory, Investment and Ease of Doing Business reforms, the Prime Minister also pointed out that in several sectors, the Government has taken steps beyond what experts had anticipated. He also highlighted that significant decisions have been made regarding manufacturing and export in this budget.
PM Modi highlighted that in 2020, the Government made a significant decision to revise the definition of MSMEs after 14 years, which eliminated the fear among MSMEs that they would lose Government benefits if they grew. He noted that the number of MSMEs in the country has increased to over 6 crore, providing employment opportunities to crores. PM Modi emphasized that in this budget, the definition of MSMEs has been further expanded to instil confidence in their continuous growth. This will create more employment opportunities for the youth, he said, highlighting that the biggest problem faced by MSMEs was the difficulty in obtaining loans.
He added that ten years ago, MSMEs received loans worth approximately Rs 12 lakh crore, which has now increased to around Rs 30 lakh crore. The Prime Minister announced that in this budget, the guarantee cover for MSME loans has been doubled to Rs 20 crore. Additionally, customised credit cards with a limit of Rs 5 lakh will be provided to meet working capital needs.
Pointing out that the country has witnessed consistent government policies for over a decade, the Prime Minister highlighted that in the past 10 years, India had shown a commitment to reforms, financial discipline, transparency, and inclusive growth. He emphasised that the assurance of consistency and reforms has brought new confidence within the industry.
He assured every stakeholder in manufacturing and export that this consistency will continue in the coming years. Encouraging stakeholders to take bold steps and open new avenues for manufacturing and export for the country, PM Modi highlighted that every country in the world wants to strengthen its economic partnership with India. He urged the manufacturing sector to take full advantage of this partnership.
