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.
Chairman: R S Gujral (Finance Secretary)
- 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.
Categories: Business, Economy & Banking
Tags: Current Affairs 2013