Allocated Rs 3,300 crore to MSME sector, highest in last 3 financial years, says govt

Government has earmaked over Rs 3,300 crore this fiscal, the highest allocation in the last three financial years, to develop the MSME sector and is implementing a special programme to develop its infrastructure, Lok Sabha was informed on Monday.

Noting that Micro, Small and Medium Enterprises (MSMEs) accounted for over 37 per cent of the GDP and over 42 per cent of total exports, MSME Minister Kalraj Mishra said the sector was facing constraints in accessing credit facilities.

"For implementing various schemes for the development of MSMEs, government has allocated Rs 2,700 crore, Rs 2,835 crore, Rs 2,977 crore and Rs 3,327 crore for the 2011-12, 2012-13, 2013-14 and 2014-15, respectively," he said while replying to questions during Question Hour.

He said the government was implementing a special programme to promote and develop infrastructure to improve productivity and competitiveness of micro, small and medium enterprises in the country.

"It is generally believed that a large number of micro, small and medium enterprises are using outdated technology because of lack of sufficient finance, lack of access to modern technology, absence of in-house research and development etc.," Mishra said.

Market development assistance, interest subsidy certificate scheme and credit-linked capital subsidy scheme, are among the programmes being implemented for MSMEs sector, he said.

"The government has proposed to revise the investment limit to classify MSME, considering the increase in the price index and cost of input, which are the indicators of inflation and have invited comments from stakeholders in this regard," Mishra said.