GST no hindrance for MSME growth: Kalraj Mishra

Bengaluru, July 14, 2017: The newly rolled out GST regime is in no way a hindrance to the growth of the MSME sector but it would help it improve its growth from the current 10 per cent and also support sustainability, Union Minister for MSME Kalraj Mishra today said. Speaking at the 7th Indian Stainless Steel House ware Show here, he said the government had opened a Forum to address all types of grivances from the MSME regarding GST and also provided a separate GST-MSME link in its department’s website.

To encourage employ ability of youth and train 15 lakh youth per annum, his Ministry had started work on setting up 15 new tool rooms with an investment of Rs 2500 crore with
World Bank assistance.  He said the government had enhanced the MSME Trust fund from Rs 2500 crore to Rs 7500 crore and credit guarantee from this trust had also been doubled from Rs one to Rs two crore. ”We have asked the banks to increase the credit limit from 20 per cent of turnover of MSME units to 25 per cent and Capital advances from 20 per cent to 30 percent for those MSMEs that adopt digitalisation.

Mr Mishra said Make in India campaign was a good starting point where MSMEs would contribute significantly. The scheme’s strategy is to facilitate investment, faster innovation, enhance skill development and build manufacturing infrastructure in the country. Saying that MSME was key to national growth, he said the sector including Khadi and Village Industries and Coir Sectors were the largest employers, after agriculture.

 

MSMEs have shown growth of over 10 per cent growth in recent years which was more than that recorded by large enterprises. This sector contributes 30.71 per cent of the country’s GDP, 33.34 per cent of country’s Gross Value Added (GVA), 33.40 per cent of manufactured out pur and 45 per cent of Exports.

The sector provide employment to 111.23 million persons through over 51.30 enterprises producing over 6000 products, he said. Mr Mishra said Prime Minister Narendra Modi’s vision was to make India the ‘Manufacturing Hub’ of the world and achieve double digit DGP growth rate by giving greater impetus to MSME sector, which is called ‘engine of growth’.

More than 5000 delegates that include manufacturers, traders, retailers, wholesalers, distributors, buyers and bulk buying decision makers have come under one roof at this summit. They are build new business networks and simultaneously strengthening the existing ones with their customers.