No study done on the advantages and disadvantages of foreign investment in MSMEs: Bhanu Pratap Singh Verma
In a written reply in Rajya Sabha, on Monday, he said no specific study has been conducted on the advantages and disadvantages of foreign investment in MSMEs sector from competitiveness and viability point of view by the Ministry.
Minister of State for Micro, Small and Medium Enterprises, Bhanu Pratap Singh Verma in a written reply in Rajya Sabha, on Monday, said no specific study has been conducted on the advantages and disadvantages of foreign investment in Micro, Small and Medium Enterprises (MSMEs) sector from competitiveness and viability point of view by the Ministry.
Foreign Direct Investment (FDI) is an enabling policy, which is uniformly applicable irrespective of scale and size of eligible investee entities.
To promote FDI, the government has put in place an investor-friendly policy, where most sector or activities including MSMEs except certain strategically important sectors/activities are open for 100% FDI under the automatic route, subject to sectoral laws, regulations or rules, security conditions and other state, local or regional regulations
He also listed number of initiatives under AatmaNirbhar Bharat Abhiyan to support the MSME sector.
Some of those are Rs. 5 lakh crore collateral free automatic loans for business under Emergency Credit Line Guarantee Scheme (ECLGS), including MSMEs, Rs. 50,000 crore equity infusion through Self Reliant India Fund. This scheme has a provision for corpus of Rs.10,000 crore from Government of India. New revised criteria for classification of MSMEs. and New registration through ''Udyam Registration'' for Ease of Doing Business.
He also listed no global tenders for procurement up to Rs. 200 crore, inclusion of retail and whole sale trades as MSMEs w.e.f. 02 July, 2021, Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs and integration of Udyam Portal and National Career Service (NCS) of Ministry of Labour & Employment, as an outcome registered MSMEs are able to search for jobseekers on NCS.
The Ministry of Micro, Small and Medium Enterprises (MSME) implements various schemes and programmes aimed at promotion and development of MSME Sector in the country.
These schemes or programmes include MSME Champions Scheme, Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Prime Minister's Employment Generation Programme (PMEGP), Micro and Small Enterprises - Cluster Development Programme (MSE-CDP).
Edited by Akanksha Sarma