Union Budget 2022: Incentives for MSMEs
The MSME sector is an important sector of the Indian economy. The share of the MSME manufacturing in all India manufacturing gross value output in 2018-19 and 2019-20 was 36.9 per cent and 36.9 per cent respectively. Further, as per the information received from the Directorate General of Commercial Intelligence and Statistics, the share of export of specified MSME related products to All India exports during 2019-20 and 2020-21 was 49.8 per cent and 49.5 per cent respectively. Under the Prime Minister’s Employment Generation Programme (PMEGP), the estimated employment generated (number of persons) in micro-enterprises during the year 2020-21 and 2021-22 (as of 1 July 2021) is 5.95 lakh and 1.19 lakh respectively.
Giving a further impetus to the MSME sector, Union Finance Minister Nirmala Sitharaman announced the following incentives for this sector:
- Udyam, e-shram, NCS and ASEEM portals to be interlinked.
- 130 lakh MSMEs provided additional credit under Emergency Credit Linked Guarantee Scheme (ECLGS).
- ECLGS to be extended up to March 2023.
- Guarantee cover under ECLGS to be expanded by INR 50,000 crore to a total cover of INR 5 Lakh Crore.
- INR 2 lakh crore additional credit for Micro and Small Enterprises to be facilitated under the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE).
- Raising and Accelerating MSME performance (RAMP) programme with an outlay of Rs 6,000 crore to be rolled out.
This blog has been authored by Ankita Sharma.