Ease of doing business for MSMEs: Hailing nine years of Prime Minister Narendra Modi-led government, MSME minister Narayan Rane noted that the MSME sector’s budget has increased by more than six times along with the launch of 26 new schemes and more than 1.5 crore MSME registrations on the Udyam registration portal.
“In the last 9 years, under the strong leadership of respected Prime Minister Shri @narendramodi ji, the MSME sector is playing an important role in achieving the goal of ‘Self-reliant India’. MSME budget increased by more than 6 times, 26 new schemes launched, more than 1.5 crore registrations on Udyam portal,” Rane tweeted.
The government had allocated Rs 22,138 crore in the 2023-24 budget estimate (BE) to the MSME ministry vis-a-vis Rs 3,327 crore allocated during 2014-15 BE and Rs 2,977 crore during 2013-14 BE.
Also read: MSME sector’s revenues likely to cross pre-pandemic levels in 2023-24: RBI Bulletin
Among the initiatives taken during the nine-year run of the Modi government for MSMEs were Emergency Credit Line Guarantee Scheme (ECLGS), ZED (Zero Defect, Zero Effect) scheme, Raising and Accelerating MSME Performance (RAMP) scheme, Udyam registration portal, MSME Innovative scheme, etc. Moreover, launched on July 1, 2020 post Covid pandemic, over 1.97 crore enterprises have registered on the Udyam portal as of June 11 to benefit from the various schemes available for MSMEs.
Rane also said that “achievements like rejuvenation of Khadi, creation of more than 70 lakh jobs through PMEGP (Prime Minister Employment Generation Programme) and export of coir products to 110 countries are testimony to our dedicated efforts. The MSME sector is determined to make its significant contribution in realizing the dream of a 5 trillion economy.”
Also read: Udyam: Govt’s post-Covid MSME registration portal nears whopping 2-crore mark
Importantly, recovering from the impact of Covid, the MSME sector is expected to grow past the pre-Covid period in terms of revenues this fiscal except for export-oriented sectors affected by global headwinds, according to the Reserve Bank of India’s (RBI) April 2024 monthly bulletin.
In addition, the MSME sector’s EBITDA (earnings before interest, tax, depreciation and amortisation) margin, which indicates the earnings of an enterprise before factoring in non-operating expenses, will grow past the FY20 level to reach nearly 6 per cent this fiscal, credit rating agency Crisil had said in a statement in April. The revenue, on the other hand, is expected to reach 1.36 times the pre-Covid level for the sector.