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PM Modi announces 12 'Diwali gifts' for MSME sector; launches portal for Rs 1 crore loan in 59 minutes

GST-registered MSMEs to get 2 per cent rebate on incremental loan of up to Rs 1 crore, PM Modi said.

Edited by: India TV News Desk, New Delhi [ Updated: November 02, 2018 18:34 IST ]
PM Modi said in four years his government has achieved
Image Source : @BJP4INDIA

PM Modi said in four years his government has achieved what many did not believe and achieved what no other nation in the world has done. (Photo/Twitter@BJP4India)

Prime Minister Narendra Modi on Friday launched a support programme that aims to enhance credit access to micro, small and medium (MSME) businesses. The initiative will help generate employment in micro, small and medium enterprises (MSME) sector. Speaking at the event, PM Modi said the government  has taken 12 historic decisions which were like 'Diwali gifts' for the small and medium enterprises. The event was attended by Finance Minister Arun Jaitley and Minister of State for MSME Giriraj Singh.

Talking of India jumping 23 places on World Bank's latest 'Ease of Doing Business' ranking, PM Modi said in four years his government has achieved what many did not believe and achieved what no other nation in the world has done - leaping from 142 rank in 2014 to 77th rank.

Breaking into top 50 rank is not far away. Reform of processes will help small and medium enterprises (MSMEs), PM Modi said..

WATCH: PM Modi's 12 big announcements for MSME sector

PM Modi's 12 'Diwali gifts' for MSME sector: Highlights

# Twelve major decisions taken by Central government for MSMEs Sector are proof that when after breaking silos, collective initiatives are taken, collective responsibilities are fulfilled, and collective decisions are taken, it creates a comprehensive impact.

After agriculture, MSME is the biggest job provider sector. If agriculture is the backbone of India's economy then MSME is taking the economy to newer heights.

# India has improved its ranking in Ease of Doing Business Index. No could have imagined in four years ago. The improved position has helped MSME sector the most.

# I announce the country-wide launch of 59-minute loan approval portal. 

GST-registered MSMEs to get new loan or incremental loan of upto Rs 1 crore with 2 per cent rebate in interest.

The government has decided to increase the rebate from 3 to 5 per cent on loan offered to importers during pre-shipment and post-shipment.

The government has decided to increase the rebate from 3 to 5 per cent on loan offered to importers during pre-shipment and post-shipment.

# Companies whose turnover is over Rs 500 crore will now have to be registered on Trade Receivables e- Discounting System or TReDS platform. This will help in cashflow for MSMEs.

Environmental clearance process has been simplified. The government wants to support self-certification.

The outreach programme will run for 100 days covering 100 districts throughout the country.

"The Central Ministers are likely to visit these Distts for further boosting MSME Sector in terms of asking entrepreneurs to take benefit of these facilities including access to credit and market," the finance ministry said.

The MSME sector constitutes a vast network of over 63 million units and employs 111 million people, contributing around 30 per cent to the GDP. It accounts for about 45 per cent of manufacturing output and around 40 per cent to total exports.

A major obstacle for growth of MSMEs is their inability to access timely and adequate finance as most of them are in niche segments where credit appraisal is a major challenge.

As per the RBI's Mint Street Memo report, note ban imposed in November 2016 has led to further decline in the already falling credit to the MSME sector, while GST roll out has not made any significant positive impact on overall credit to the sector but has deeply dented their exports.

About 97 per cent of MSMEs operate in the informal sector.

(With PTI inputs)

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