Budget 2022: MSMEs
Micro, Small & Medium Enterprises (MSMEs) contribute enormously to the economic and social evolution of the country by promoting entrepreneurship and generating employment opportunities. The Union Budget 2022-23 highlights the MSME sector, a vital sector that makes up for about 45 per cent of the country’s total manufacturing output, 40 per cent of exports, and almost 30 per cent of the national GDP.
The Budget covered the following points with regards to the MSMEs:
- Udyam, e-Shram, National Career Service (NCS) and Aatamanirbhar Skilled Employee Employer Mapping (ASEEM) portals will be interlinked, and their spectrum will be broadened. They will now serve as portals with live, organic databases, delivering G2C, B2C, and B2B services. These services will relate to credit facilitation, skilling, and recruitment to formalise the economy and improve entrepreneurial opportunities.
- Emergency Credit Line Guarantee Scheme (ECLGS) has delivered much required additional credit to more than 130 lakh MSMEs. This has allowed them to mitigate the unfavourable influence of the pandemic. The hospitality and corresponding services, especially those by Micro and Small Enterprises (MSEs), are yet to regain their pre-pandemic business level. Regarding these factors, the ECLGS will be extended up to March 2023, and INR 50,000 crores will expand its guarantee cover to a total of INR 5 lakh crore, with the additional amount reserved exclusively for hospitality-related enterprises.
- Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme will be revamped with funds infusion. This will stimulate additional credit of INR 2 lakh crore for MSEs and boost employment opportunities.
- Raising and Accelerating MSME Performance (RAMP) programme with an outlay of INR 6,000 crore over five years will be rolled out. This will enable the MSME sector to become more resilient, competitive and efficient.