Que. Faster economic growth requires increased share of the manufacturing sector in GDP, particularly of MSMEs. Comment on the present policies of the Government in this regard.
जी.डी.पी. में विनिर्माण क्षेत्र विशेषकर एम.एस.एम.ई. की बढ़ी हुई हिस्सेदारी तेज आर्थिक संवृद्धि के लिए आवश्यक है। इस संबंध में सरकार की वर्तमान नीतियों पर टिप्पणी कीजिए।
Structure of the Answer
(i) Introduction: Briefly emphasize the significance of enhancing the “manufacturing sector” through “MSMEs” for India’s economic growth and job creation.
(ii) Main Body: Analyze the current policies that support the manufacturing sector and MSMEs, dividing into relevant headings as per policy focus.
(iii) Conclusion: Summarize the importance of these policies for economic growth and highlight areas for improvement in the MSME sector.
Introduction
India’s push for “faster economic growth” hinges on boosting the manufacturing sector, especially “MSMEs,” which drive employment, regional development, and industrial diversification, making them crucial for strengthening the economy’s foundation.
Financial Empowerment and Credit Access for MSMEs
(i) Priority Sector Lending (PSL) Reforms: Ensures higher credit availability to MSMEs from commercial banks, addressing liquidity concerns and boosting sectoral growth.
(ii) Emergency Credit Line Guarantee Scheme (ECLGS): Offers collateral-free loans, helping MSMEs maintain operations amid economic downturns and fostering resilience.
(iii) Credit Guarantee Fund Scheme (CGTMSE): Facilitates collateral-free loans by providing a government-backed guarantee, thereby increasing credit access for riskier small enterprises.
(iv) Pradhan Mantri Mudra Yojana (PMMY): Supports micro-businesses with loans under MUDRA, aiding self-employment and encouraging smaller manufacturing units.
(v) Stand-Up India Scheme: Provides targeted financial support to women and marginalized communities, empowering underrepresented groups within MSME manufacturing.
Technological Upgradation and Innovation Support
(i) Digital MSME Scheme: Promotes digitization, enabling MSMEs to adopt “digital tools” for efficiency and access to broader markets, improving competitiveness.
(ii) Zero Defect Zero Effect (ZED): Encourages sustainable manufacturing practices, ensuring MSME products are internationally competitive with minimal environmental impact.
(iii) MSME Technology Centers: Equip MSMEs with advanced technologies and skilled labor, enhancing product quality and sectoral innovation capabilities.
(iv) Financial Assistance on Intellectual Property Rights: Enables MSMEs to safeguard and capitalize on innovations, fostering a culture of IP awareness and growth.
(v) Scheme for Promotion of Innovation, Rural Industries, and Entrepreneurship (ASPIRE): Establishes incubation centers for innovative MSMEs in rural areas, supporting rural industrial growth and skill-building.
Market Access and Export Promotion for MSMEs
(i) Public Procurement Policy: Mandates 25% MSME procurement by central ministries, ensuring steady demand for MSME-produced goods and services.
(ii) Trade Infrastructure for Export Scheme (TIES): Develops export infrastructure, enabling MSMEs to efficiently reach global markets and increase export revenue.
(iii) Export Promotion Councils for MSMEs: These councils guide MSMEs in “export procedures” and certifications, increasing their competitiveness on the global stage.
(iv) International Cooperation Scheme: Aids MSMEs in participating in global trade shows and fairs, expanding their international reach and fostering partnerships.
(v) Udyam Registration: Simplifies MSME registration, offering them formal recognition, which eases access to government schemes and grants.
Skill Development and Training for MSME Workforce
(i) Entrepreneurship and Skill Development Programme (ESDP): Offers workshops and training for MSME owners, improving “entrepreneurial skills” and operational expertise.
(ii) National Apprenticeship Promotion Scheme (NAPS): Promotes apprenticeship within MSMEs, bridging the skill gap by creating a workforce proficient in manufacturing tasks.
(iii) Skill India Mission: Upskills MSME employees, creating a workforce capable of adapting to technological advancements and higher-quality production.
(iv) MSME-SAMADHAN: Provides a platform for resolving delayed payments, helping MSMEs maintain liquidity and business continuity.
(v) Support to Training and Employment Programme (STEP): Focuses on women’s employment and entrepreneurship within MSMEs, promoting inclusive economic participation.
Conclusion
Government policies significantly empower MSMEs, enhancing “credit access,” “technological growth,” and “market reach.” Continuous policy support and sector-specific reforms are vital for a robust “manufacturing sector” and a competitive MSME ecosystem.
