Share of MSME sector in GDP will go up: KH Muniyappa

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Saurabh Gupta | 06 Apr, 2013
In an exclusive interview with SME Times, Union Minister of Micro Small & Medium Enterprises (Independent Charge), K.H. Muniyappa said that the GDP share of MSME is 8.5 percent and I hope it will go up. The MSME sector accounts for around 45 percent of the manufacturing output and around 36 percent of total value of exports.

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.

The MSMEs which have been issued Entrepreneurship Memorandum - II grew at more than 18 percent last year. The MSME sector has been growing consistently above 10 percent for the last five years. Thus, we can see that compared to the other larger industries, MSMEs have been growing far better.

Glimpse of the interview...

What your ministry is doing to support MSME exporters?
K.H. Muniyappa: The government has set up an Inter-Ministerial Committee (IMC), headed by Secretary, Department of Industrial Policy and Promotion (DIPP), to address the exports issues of the sector and suggest ways to boost the manufacturing output. The Committee will submit its recommendations within one month.

The Government has been fully appreciative to the needs to support the sector. They have, therefore, more than doubled our Plan allocation for the 12th Plan Period. 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. I thank Planning Commission and Finance Ministry for this.

The MSME Ministry has aimed to create 100 new enterprises in each district every year under PMEGP. Please elaborate on this programme.
K.H. Muniyappa: Under PMEGP we have planned 100 new entrepreneurs for the each district. There are 650 districts in the country. The District Collectors are the Chairmen of the selection committee and banks, Khadi Village Industries Commissions, industries department of that state are the members of the selection committee. They will select the entrepreneurs within the three months time. After that with in two months the banks will provide finance. Subsidy will be available immediately. And we have to monitor further, with in a six months, what ever the entrepreneur start the industry it should be started. We have issued the circular from the my department also from the finance department.

And what is your future plan for this?
K.H. Muniyappa: Further we are planning to double the target from 100 entrepreneurs to 200 in each district. We are preparing the draft programme for that.

For Detailed Interview...Click Here