MSME sector allotted all-time high Rs 7,000 Cr in Budget 2019

The MSME sector has been allocated an all-time high Rs 7011.29 crore in the Interim Budget 2019 presented by Piyush Goyal, Union Minister for Finance, Corporate Affairs, Railways and Coal, on Friday.

During his speech, the Minister said that the government has taken several measures to strengthen the sector. He recapped the government’s measures to enhance credit access and boost employment for MSMEs. Goyal discussed the 59-minute loan scheme, PSU’s 25 percent procurement from MSMEs mandate, Government e-Marketplace (GeM), and more.

The Prime Minister Employment Generation Programme (PMEGP), the Ministry’s flagship scheme for employment generation, was allocated  an all-time high Rs 2,327 crore, according to an official statement. This reiterates the government’s focus on the creation of sustainable employment in the non-farm micro-enterprise sector, said the statement.

The Credit Support Programme has also been allocated Rs 597 crore for ensuring seamless credit guarantee to MSMEs. Additionally, Rs 350 crore has been provided under ‘Interest Subvention Scheme for Incremental Credit to MSMEs’. This will finance the two percent interest rebate announced on incremental loans up to Rs 1 crore for GST-registered MSME units.

The official statement said, “Under the recent announcements made on November 2, 2018, encompassing multiple initiatives and interventions for the MSME sector, 20 large and 100 small Technology Centres are going to be set up with support of Rs 6,000 Crore. This Budget has made an allocation for this initiative.”

Also, Rs 450 crore has been allocated for setting up clusters in the manufacturing and artisan sectors. Further, the allocation under National SC/ST-Hub has been increased.

Mission Solar Charkha, launched in the current financial year, has been allocated Rs 143 crore in the new Budget. The scheme envisages setting up production clusters, each employing 2,000 youth in the rural area, of which at least 50 percent would be women.

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