Govt raises FDI in MSMEs to 100 pc

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SME Times News Bureau | 01 Dec, 2012
To promote capital investment by foreign multinational companies in Micro, Small and Medium Enterprises (MSMEs) the Foreign Direct Investment (FDI) in micro and small enterprises (MSEs) has been raised to 100 percent from 24 percent, Minister of State (Independent Charge) for MSMEs, K. H. Muniyappa said Friday.

The minister informed this in a written reply to a question in the Lok Sabha on Friday.

"However, FDI in MSEs is subject to sectoral caps and other relevant sectoral regulations," he added.

He said, "Enhanced capital investment by foreign multinational companies will create an environment of healthy competition among MSMEs whether financed by foreign investment or otherwise, resulting in availability of better products for consumers."

In an another written reply, Muniyappa infomed the Lok Sabha the MSME sector has been growing steadily which is evident from latest data available for filing of Entrepreneurs' Memorandum (EMs) at all India level during last three years.

The targets, however, are not fixed as filing of EMs is optional for micro and small enterprises.

Giving credit to the recommendations of the Prime Minister's Task Force on MSME, he said PM's Task Force made 85 recommendations of which 77 were accepted and 8 were dropped/delinked by the Steering Group.

Out of these 77 recommendations, action on 39 recommendations has been completed and action on 38 recommendation is in progress, he added.