The employment generation and manufacturing growth depends on the performance of MSME sector. What are your plans for the sector
We have decided to set up 100 new enterprises in every district of the country every year. In phase one, we'll start this scheme in 650 districts of the country. Our target is to set up about 3.39 lakh enterprises in five years, which would create 27.12 lakh employment opportunities. My ministry has allocated over R8,000 crore in the 12th plan under PMEGP.
The % of MSME sector in total value of exports has come down to 36% from 40%. What are your plans to increase the falling share
The MSME sector contributes 95% of the GDP and accounts for 45% of the manufacturing output. It is true that our share has decreased but we'll back on track soon. The sector is growing consistently above 10% for the last five years. Thus, we can see that compared to other larger industries, MSMEs have been growing far better. We have also announced the national manufacturing policy where the MSME sector should reach a level of 25% of GDP by the year 2025.
Are you happy with the support your ministry is getting from the finance ministry
Finance minister has been very supportive. Our allocation for the 12th plan period has been doubled. In the 11th plan, it was about R11,000 crore and for the 12th plan we have been allocated more than R24,000 crore. In the Budget also very concrete measures for the ministry were announced.
What all did MSME sector get in the Budget
The announcement was made to set up 15 new tool rooms and technology development centers., where youth will be imparted technical training. The re-financing for SIDBI has been increased from R5,000 crore to R10,000 crore. A new fund of R500 crore will be set up for supporting factory services and incentivising growth of MSMEs by continuing to provide non-tax benefits.