MSME sector is the key areas of NDA government: PM Modi

Prime Minister Narendra Modi highlighted that as the backbone of Indian Economy, MSMEs are going to be one of the key focus areas of the National Democratic Alliance (NDA) government. While addressing the election rally in Puducherry on Tuesday, March 30, PM Modi further highlighted that Rs 14,000 crore has been sanctioned for 3.16 lakh MSMEs in the state with almost 1.5 lakh people directly linked to the sector benefitting.

As per the reports, Prime Minister further added that the policies initiated by the government helped MSMEs in the ease of doing business. He is referring to the slew of policies that were rolled out by the government under the Rs 20 lakh-crore 'Aatmanirbhar Bharat' stimulus package by Finance Minister Nirmala Sitharaman last year.

Several schemes were rolled out under the stimulus package including the new definition of MSMEs, the rolling out of Rs 50,000-crore Funds of Funds, Rs 3 lakh-crore Emergency Credit Line Guarantee (ECLG) scheme and much more. According to PM Modi, 8.5 lakh MSMEs have benefitted from the ECLG scheme. He also said the government has taken measures to end harassment by tax officials.

The MSME sector contributes significantly to India's growth numbers — about 30 percent. In addition, it is also responsible for creating 11 crore jobs in the nation. 2020 has been a tumultuous year for the Indian MSME sector.

The sector took a massive beating amidst the COVID-19 pandemic, with numerous surveys showing that the disruptions had impacted earnings by 20-50 percent. It is being touted that this sector has taken the maximum heat.

According to DGCIS data, the value of MSME related products in India is $147,390.08 million and contributed 48.56 percent of total export during 2017-18.  Prime Minister Narendra Modi added that his government was committed to doing everything that needed to be done in order to ensure the growth of the MSME sector.