MSME share in GDP may touch 10%

Written by fe Bureau | New Delhi | Updated: Mar 13 2010, 03:32am hrs
The micro, small and medium enterprises (MSMEs) are expected to contribute up to 10% to the countrys gross domestic product (GDP) soon, said the finance ministry on Thursday. The current contribution of MSME sector to GDP is 8%. MSME sector plays a vital role in countrys growth. From 3-4% to 6% and to 8-9% now, the growth story has to move and will move to the higher level of about 10% soon and that is what the country needs, finance secretary Ashok Chawla said while inaugurating the All India Management Association (AIMA) Global Convention.

Chawla, however, emphasised, The country today needs governments contribution in order to remove the poverty level. This is the right time to make the leap forward and adopt the best practices. Therefore the sector needs three things i.e., upgradation of technology, financing is required so that the projects are timely completed and promotion of product with the help of marketing mix. He also stressed that the targeted delivery of credit should reach to the micro sector. Commercial banks should ensure easy availability of credit to the sector, he added.

He further said that the role of government and state is up to a point that they are meant to leap. The world now recognises that the MSME has reached a level of maturity and role of innovation, enterprise and initiative comes in he further said. MSME secretary Dinesh Rai said that the sector employs 60 million people and contributes 40% to total exports. We are a country of young people and local markets and local expertise with a target of developing 500 million skilled people by the year 2022. Private sector has a pivotal role to play a major way, which would be by PP, he said.