Centre envisions $2T contribution from MSMEs in $5T economy target
The government aims to ensure that micro, small, and medium enterprises contribute $2 trillion to the country's target of becoming $5 trillion economy by 2024.
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The government on Tuesday said it envisioned micro, small, and medium enterprises (MSMEs) contributing $2 trillion to the country's target of becoming a $5 trillion economy by 2024.
Under the Prime Minister's Employment Generation Programme (PMEGP), 65,312 new micro-enterprises have been set up, the MSME Ministry said in its year-end review for 2019.
"The Indian economy is likely to emerge as one of the leading economies in the world, with an envisioned GDP of $5 trillion by 2024. Our vision is to ensure that at least a contribution worth $2 trillion comes from the MSME sector," it said.
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Under PMEGP, 5,22,496 employment opportunities have been generated, and margin money subsidy worth Rs 1,929.83 crore has been utilised, the ministry added.
PMEGP is a major credit-linked subsidy programme being implemented by MSME Ministry since 2008-09.
The scheme is aimed at generating self-employment opportunities through establishment of micro-enterprises in non-farm sectors by helping traditional artisans and unemployed youth in rural and urban areas.
More about PMEGP
Through setting up small businesses, the scheme aims to generate a steady stream of employment opportunities in various areas of the country. Another objective is facilitating financial institutions to lend more to the micro sector.
PMEGP is administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME) and implemented by the Khadi and Village Industries Commission (KVIC), which functions as the nodal agency at the national level. At the state level, PMEGP is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs), and banks.
Earlier in August 2019 , Nitin Gadkari, Union Minister for MSME, presented data revealing that PMEGP created 5.87 lakh micro enterprise jobs in 2018-19, against the target of 5.79 lakh jobs.
The most jobs were created in Jammu and Kashmir (60,232), Maharashtra (45,136), Uttar Pradesh (41,944), and Tamil Nadu (41,480).
Gadkari added that under PMEGP, the employment generated during the years 2014-15, 2015-16, 2016-17, and 2017-18 was 3.58 lakh, 3.23 lakh, 4.08 lakh, and 3.87 lakh, respectively.
(Disclaimer: Additional background information has been added to this PTI copy for context)
(Edited by Teja Lele Desai)
