Aim to increase MSMEs' contribution to GDP to 50 pc: Nitin Gadkari

Describing the micro, small and medium enterprises (MSME) as backbone of the Indian economy, Union Minister of MSMEs Nitin Gadkari on Tuesday said the government's aim is to increase the sector's contribution to the GDP to 50 percent from the existing 30 percent.

Speaking at the inaugural session of the three-day TiE Global Summit (TGS) being held virtually, Gadkari said the MSME sector currently constitutes 48 percent of total exports from India and the government aims to take it to 60 percent in future.

"MSME is the backbone of Indian economy...a total 30 percent of the GDP in Indian economy is contributed by the MSME. Out of our total exports, 48 percent is also from MSME," he said.

"At the same time, up till now, MSMEs have created 11 crore jobs. And that is one of the reasons why MSME is the backbone of the country," he added.

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"Now we have decided to make this 30 percent contribution to GDP to 40 percent, and 48 percent of the exports contribution to 60 percent. And we want to create five crore jobs, he added.

Gadkari said currently, village industries such as handlooms, handicrafts, and Khadi Gram Udyog are generating Rs 80,000 crore revenues, which needs to be taken up to Rs 5 lakh crore in the next few years.

Requesting industrialists to invest in India, the union minister said that the country currently has an excellent network of roads, abundantly available power and water, and reformed labour and other administrative laws.

He said his ministry was planning to take up 22 new green highway road projects across the country.

According to him, though there is an impact of COVID- 19 globally, the Indian industry may get some opportunities out of it.

Lauding the achievements of the Indian automobile industry, Gadkari said the sector witnesses Rs 4.5 lakh crore turnover annually and the country can become a global hub for automobile manufacturing.

He said currently research is going on to use hydrogen fuel cells as an alternative source of energy for automobiles.