Small businesses’ big role: MSMEs to help govt double farmer’s income, achieve $5 trillion GDP target

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Published: November 18, 2019 2:44:06 PM

The government’s enthusiasm towards leveraging small businesses potential to boost economy comes amid India’s continuous rise in the ease of doing business scenario.

MSMEs’ contribution to GDP currently stands at around 29 per cent.

MSMEs have to play an important role in accomplishing the twin targets of doubling the farmers’ income by 2022 and making India a $5 trillion economy, Commerce ministry MoS Som Parkash said at the inauguration of the Trade Fair in Delhi recently. The government had in this year’s budget stressed on doubling farmers’ income by FY22 and had proposed setting up new 10,000 Farmer Producer Organisations by 2022 even as agriculture sector’s growth dipped to just 2 per cent in Q1 FY20 down from 5.1 per cent in the same quarter previous year. MSMEs’ contribution to GDP currently stands at around 29 per cent while the government intends to increase it to 50 per cent in the coming five years.

MSME minister Nitin Gadkari urging entrepreneurs for new ideas to improve designs and reduce costs said that various states have rich minerals and raw materials in abundance and that there is a need to convert them into business and industrial opportunity. The government’s enthusiasm towards leveraging small businesses potential to boost economy comes amid India’s continuous rise in the ease of doing business scenario. The country jumped by 14 ranks to climb to 63rd position this year in the World Bank’s Ease of Doing Business 2020 survey from 77th position last year.

Also read: Why cloud computing is the gateway to industry 4.0 for Indian small businesses

Gadkari also said that for quality production of goods, the government is working on setting up of technology training centres which is internationally acceptable. There are 18 technology centres called as Tool Rooms which the government is looking to increase to 153 that would train around 8 lakh youth in different skills, MSME secretary Arun Kumar Panda had said in September this year at an event. The India International Trade Fair this year’s theme is Ease of Doing Business. The fair allows MSMEs, large businesses, non-government agencies, artisans etc to market their products and services to potential customers.

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