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MSME to generate 27.12 lakh jobs: Muniyappa

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Abhigna
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NEW DELHI, INDIA: "The MSME sector contributes around 9 per cent of GDP and accounts for around 45 per cent of the manufacturing output and around 36 per cent of total value of exports, says MSME minister K.H. Muniyappa on the eve of the main event of National Award Presentation ceremony.

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Addressing the media, the minister said, "The MSME Sector of India has been repeatedly mentioned as the growth engine of the Indian economy, but the depth of its achievements is often not fully appreciated."

Highlighting the contribution of MSME sector, the minister said, "The MSME sector contributes around 9 per cent of GDP and accounts for around 45 per cent of the manufacturing output and around 36 per cent of total value of exports. Not only this is a sector of 3.6 crore thriving enterprises employing over 8 crore persons but the sector is continuously exhibiting a growth rate far above the large sector."

The sector has been growing consistently above 10 per cent for the last five years. Thus, we can see that compared to the other larger industries, MSMEs have been growing far better, added Muniyappa.

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The Government has announced the National Manufacturing Policy where industry sector should reach a level of 25 percent of GDP by the year 2025.

MSME sector is the major hope, and, if I may say so, the only hope to attain this objective, he added.

Thanking the planning commission and the finance ministry for allocating more funds to MSME sector, Muniyappa said, "In the 11th Plan Period it was about Rs.11000 crore and for the 12th Plan Period we have been allocated more than Rs.24000 crore."

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Tool Rooms and Technology Development Centres

Appreciating the efforts and measures taken by the finance ministry to support MSME sector, Muniyappa said, "The ministry has helped us to set up of 15 new Tool Rooms and Technology Development Centres and upscaling the Cluster Development Scheme for village industries to 800 in the next four years (for the last Plan Period, it was 101)."

He further added, "The finance ministry has recognised the Ministry of MSME-run incubators to be eligible under Corporate Social Responsibility Funding and increasing the re-financing for SIDBI from Rs.5000 crore to Rs.10000 crore.

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According to Muniyappa, the finance ministry is setting up a new fund of Rs.500 crore to support the Factoring Services and incentivizing growth of MSMEs by continuing to provide the non-tax benefits, the same benefits that they enjoy for next three years after they have grown up.

I would urge the Finance Minister to also extend on a similar basis the tax benefits to such growth bound MSMEs, he said.

Employment opportunities

"We have decided to set up 100 new enterprises in every district of the country every year under the Prime Minister's Employment Generation Programme (PMEGP)," said Muniyappa and further added, MSME ministry has allocated over Rs. 8000 crore in the 12th Plan under PMEGP to set up about 3.39 lakh enterprises which would create 27.12 lakh employment opportunities.

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