MSME has a crucial role in India’s aspiration of becoming 5-trillion economy

Speaking at the event, Amitabh Kant, CEO of NITI Aayog, said the micro, small and medium enterprises have a very vital role in fuelling the economic growth of the country.

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MSME has a crucial role in India’s aspiration of becoming 5-trillion economy

The MSME sector, considered the backbone of the Indian economy, took a severe beating because of the pandemic as many micro, small, and medium companies were forced to shut down.

In these challenging times, The Economic Times took the initiative to honor the success stories and achievement of homegrown MSMEs through its Second of ‘ET Rise Top MSMEs’ Ranking’.

Also Read: Post covid devastation Enhanced role for MSMEs  for National Reincarnation through Smart and Secured Governance

Speaking at the event, Amitabh Kant, CEO of NITI Aayog, said the micro, small and medium enterprises have a very vital role in fuelling the economic growth of the country. The focus on them is more now as India aspires to be a $5-trillion economy.

The sector contributes about 45% to manufacturing output, more than 40% of exports, over 28% of the GDP while creating employment for about 11.1 crore people, which in terms of volume stands next to the agricultural sector.

The Union government has undertaken significant reforms in the last few years to create a conducive business environment. These schemes are in the form of credit and financial assistance, skill development and training, infrastructure support, and technology up-gradation.

The Emergency Credit Line Guarantee Scheme is one such scheme that provides collateral-free automatic loans for businesses, including MSMEs. Other similar initiatives include Credit Guarantee Scheme for Subordinate Debt of Rs 20,000 crore and Rs 50,000-crore equity infusion through Self-Reliant India Fund; a revised category of classification of MSMEs; a registration of MSMEs through the Udyam portal for ease of doing business and no global tenders for procurement of Rs 200 crore.”

These ratings not only help MSMEs in enhancing their acceptability among investors but also increase their visibility based on which many banks offer better interest rate concessions to the organization.

The rating is a comparative exercise that evaluates the relative ranking of the entity across industries. This covers important risk factors and areas for improvement for the entities concerned, thus providing valuable third-party feedback. The rankings also help large corporations evaluate vendors and dealers.

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MSME has a crucial role in India’s aspiration of becoming 5-trillion economy
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Speaking at the event, Amitabh Kant, CEO of NITI Aayog, said the micro, small and medium enterprises have a very vital role in fuelling the economic growth of the country.
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THE POLICY TIMES
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