Centre aims to increase MSME sector contribution to GDP up to 50%: Gadkari

By: |
December 08, 2020 7:26 PM

Gadkari said currently village industries such as handlooms, handicrafts, Khadi Gram Udyog are generating Rs 80 thousand crore revenues which needs to be taken up to Rs five lakh crore in the next few years.

In a recent report, ICICI Securities said cement’s industry average operating margin grew 25% Y-o-Y in FY’20 and further rose 20% Y-o-Y to over Rs 1,250/tonne in the first half of the current fiscal.In a recent report, ICICI Securities said cement’s industry average operating margin grew 25% Y-o-Y in FY’20 and further rose 20% Y-o-Y to over Rs 1,250/tonne in the first half of the current fiscal.

Describing Micro, Small and Medium Enterprises (MSME) is backbone of Indian economy, Union Minister of Road Transport Nitin Gadkari on Tuesday said the government’s aim is to increase the sector’s contribution to the GDP to 50 per cent from the existing 30 per cent. Speaking at the inaugural session of the three-day TiE Global Summit (TGS)being held virtually, Gadkari said the MSME sector currently constitutes 48 per cent of total exports from India and the government aims to take it to 60 per cent in future.

“MSME is the backbone of Indian economy…a total 30 per cent of the GDP in Indian economy is contributed by the MSME. Out of our total exports, 48 per cent is also from MSME. At the same time up till now MSME created 11 crore jobs. And that is one of the reasons why MSME is the backbone of the country,” he said. “Now we have decided to make this 30 per cent contribution to GDP to 40 per cent and 48 per cent of the exports contribution to 60 per cent. And we want to create five crore jobs, he added.

Gadkari said currently village industries such as handlooms, handicrafts, Khadi Gram Udyog are generating Rs 80 thousand crore revenues which needs to be taken up to Rs five lakh crore in the next few years. Requesting industrialists to invest in India, the union minister said that the country currently has an excellent network of roads, abundantly available power and water and reformed labour and other administrative laws. He said his ministry was planning to take up 22 new green highway road projects across the country.

According to him, though there is an impact of COVID- 19 globally, the Indian industry may get some opportunities out of it. Lauding the achievements of the Indian automobile industry, Gadkari said the sector witnesses Rs 4.5 lakh crore turnover annually and the country can become a global hub for automobile manufacturing. He said currently research is going on to use hydrogen fuel cells as an alternative source of energy for automobiles.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.