MSME Sector Current Affairs - 2019
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Union Minister Nitin Gadkari has announced that Union Ministry of Micro, Small and Medium Enterprises (MSMEs) is planning to launch Bharatcraft portal, a desi version e-commerce marketing platform. It will be based on the lines of e-commerce behemoths such as Alibaba and Amazon. It will provide platform for MSMEs to market and sell their products and in turn boost the overall sector. It has potential to achieve revenues of around Rs 10 lakh crore in the 2-3 years.
Need for portal
MSME sector currently contributes nearly 29% to the manufacturing segment and 40% to the exports. It has potential to generate additional employment of 5 crore in the next five years. Union Government has set target to increase contribution of MSMEs in the manufacturing sector to 50% in the next five years.
Tags: Bharatcraft portal • Business • e-commerce platform • Economy • Government Initiatives
Prime Minister Narendra Modi launched Micro, Small and Medium Enterprises (MSME) Support and Outreach Programme. As part of this programme, PM unveiled 12 key initiatives which will help the growth, expansion and facilitation of MSMEs across the country. There are five key aspects for facilitating the MSME sector. These include access to credit, access to market, technology upgradation, ease of doing business, and sense of security for employees.
MSME Outreach Programme
It aims to boost MSME sector it is one of important sector for major generations of employment opportunities. It will run for 100 days covering 100 Districts throughout the country. Various Central Ministers will visit these districts in order to apprise entrepreneurs about various facilities being extended to MSME Sector by Union Government and financial institutions. Under it, entrepreneurs will be encouraged to come forward and make best use of these facilities including access to credit and market, etc.
Under Access to Credit aspect of this porgramme, Government will launch 59 minute loan portal to enable easy access to credit for MSMEs. Loans upto Rs. 1 crore will be granted in-principle approval through this portal, in just 59 minutes. The link to this portal will be available at GST portal.
Government will give 2% interest subvention for all GST registered MSMEs, on fresh or incremental loans. For exporters who receive loans in pre-shipment and post-shipment period will get increase in interest rebate ranging from 3% to 5%.
All MSMEs or companies with turnover more than Rs. 500 crore will now be compulsorily brought on Trade Receivables e-Discounting System (TReDS). This will enable entrepreneurs to access credit from banks, based ontheir upcoming receivables. This will help to resolve their problems of cash cycle.
For access to markets for entrepreneurs, Union Government has taken number and now it is mandatory for public sector companies to procure 25 %t, instead of 20% of their total purchases from MSMEs. Out of the 25% procurement mandated from MSMEs, 3% is reserved for women entrepreneurs. It is mandatory for all PSUs of Union Government to be part of GeM.
For Technology Upgradation, Government will form 20 hubs and 100 spokes in the form of tool rooms will be established vital part of product design. For ease of doing business, government will establish clusters of pharma MSMEs. 70% cost of establishing these clusters will be borne by the Union Government.
For simplification of government procedures, the return under 8 labour laws and 10 Union regulations will be now filed only once year. Now establishments to be visited by an Inspector will be decided through computerised random allotment.
Air pollution and water pollution laws now have been merged, and henceforth under them single consent and will be required, besides return will be accepted through self-certification. Government has promulgated ordinance under which, for minor violations under the Companies Act, entrepreneur will no longer have to approach Courts, but can correct them through simple procedures. For Social Security for MSME Sector Employees, government will launch mission to ensure that they have Jan Dhan Accounts, provident fund and insurance.