Government sets up Inter-ministerial Committee to boost exports from MSMEs

Govt sets up Inter-ministerial Committee for promoting exports of Micro, Small and Medium Enterprises (MSME) sector.

Why need for the Inter-Ministrial Committee?

  • Revival of exports which were affected by global economic slowdown ( exports decline to USD 300 billion as against projected USD 360 billion)
  • Overcoming the widening trade deficit gap as it resulted into increase in current account deficit (CAD crossed 6.7% of GDP in Q3 of fiscal year 2012-13).
  • Suggest Long and short term measures to enhance exports.

Committee Members:

Chairman: R S Gujral (Finance Secretary)

Other Members-

  • S R Rao (Commerce Secretary)
  • Sumit Bose (Revenue Secretary)
  • Madhav Lal (MSME Secretary)
  • Rajiv Takru (Financial Services Secretary )
  • Raghuram Rajan (Chief Economic Adviser)

Classification of MSMEs:-

MSME sector are classified into 2 classes with the following criteria:

1. Manufacturing or production enterprises

Enterprises Investment in plant & machinery
Micro Enterprises  < Rs.25 lacs
Small Enterprises  > Rs.25 lacs and < Rs.5 crores
Medium Enterprises  > Rs.5 crores and < Rs.10 crores

2. Service enterprises

Enterprises Investment in equipments
Micro Enterprises < Rs.10 lacs
Small Enterprises  > Rs.10 lacs and < Rs.2 Crores
Medium Enterprises  > Rs.2 Crores and < Rs.5 Crores

Contribution of MSME sector to Indian Economy

  • Around 40% of total exports.
  • Over 8% to gross domestic product (GDP).
  • Contributes around 45% of India’s manufacturing output.
  • Provides employment to about 60 million persons through 26 million enterprises.

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Categories: Business & Economy Current Affairs 2017Persons in News 2017

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