MSMEs to take India towards a path to Self-reliance
15 July 2020: Silently operating in different areas across the country, more than 6 crore MSMEs have a crucial role to play in building a stronger and self-reliant India. These small economic engines have a huge impact on the country’s GDP-making a contribution of 29 percent. They contribute to almost half of exports from the country. Additionally, more than 11 crore people are employed in the MSME sector.
That is why, considering the severe impact of COVID-19, the government has mad upward revision of MSME definition and modalities/ road map for implementing various plans for MSMEs (a)Rs.20,000 crore package for Distressed MSMEs and (b) Rs.50,000 crore equity infusion through Fund of Funds through entire gamut of ‘Atmanirbhar Bharat Package.’
In the package announcement, the definition of micro manufacturing and services unit was increased to Rs.1 crore of investment and Rs.5 crore of turnover. The limit of small unit was increased to Rs.10 crore of investment and Rs.50 crore of turnover. Similarly, the limit of a medium unit was increased to Rs.20 crore of investment and Rs.100 crore of turnover. This will help in attracting investments and creating more jobs in the MSME sector.
In the aftermath of COVID-19 pandemic, Prime Minister was quick to recognise the role of MSMEs in building the Nation. As such, MSMEs formed a very prominent part of the announcements made under the Atmanirbhar Bharat Abhiyaan. A robust ICT based system called CHAMPIONS has also been launched by the Ministry of MSME. The portal is not only helping and handholding MSMEs in the present situation, but is also providing guidance to grab the new business opportunities and in the long run, become national and international Champions.
It is said that behind every crisis, there lies a reservoir of opportunities which is relevant to the ongoing COVID-19 pandemic which has never seen a flat or downward curve. The COVID-19 has got a fresh opportunity identified by the Government as the ‘Atmanirbhar Bharat’ or Self-reliant India.
