Ease of doing business for MSMEs: “Large businesses make crores of investment — Rs 5,000 crore – Rs 6,000 crore but generate employment for 200 people. While they have their own significance but in MSMEs, the investment is of around let’s say Rs 50 crore but job creation is for 1,000 people,” said Madhya Pradesh Chief Minister Shivraj Singh Chouhan.
Ease of doing business for MSMEs: Hailing the significance of MSMEs for economic growth, Madhya Pradesh Chief Minister Shivraj Singh Chouhan on Monday assured required support from the state government for the development of the local MSME ecosystem. Urging investors to invest in the state — at the MP MSME Summit 2023 in Bhopal — Chouhan said, “The need for MSMEs to grow is also the need of the state.”
“Even large businesses cannot do what MSMEs are capable of doing. I want to assure you that we won’t leave MSMEs to fend for themselves. Large businesses make crores of investment — Rs 5,000 crore – Rs 6,000 crore but generate employment for 200 people. While they have their own significance but in MSMEs, the investment is of around let’s say Rs 50 crore but job creation is for 1,000 people,” Chouhan noted.
The minister said that as of 2022-23 (March 27, 2023) in the MSME sector, 3,54,397 MSMEs were registered in the state with the potential to generate direct employment for 18 lakh people. Moreover, “We have also developed cluster models for MSMEs such as toy cluster, medical device cluster, textile cluster, pharma park, plastic cluster, food processing cluster etc., and these clusters are continuously growing.”
During the two-day global investor summit Invest Madhya Pradesh in January this year, industrialists and entrepreneurs had shown interest to invest Rs 15.42 lakh crore in the state which was ranked second (after Himachal Pradesh) under the ‘Achievers’ category in Business Reforms Action Plan (BRAP) 2020 report launched by Finance Minister Nirmala Sitharaman in June last year.
Chouhan had said that the investors establishing MSMEs in the industrial areas identified by the state government will not have to go through certain formalities, such as, they will not require factory licenses and business licenses among others. These factories would also not be inspected by any official for the time period of three years.
As per the latest data available on the Udyam portal, Madhya Pradesh had 7.88 lakh Udyam registered MSMEs including 7.64 lakh micro units, 22,429 small enterprises and 1,579 medium enterprises.
“MP is growing and moving into the category of more developed states. Our contribution to India’s GDP was 3.6 per cent when we came to power and now it is 4.8 per cent. Our per capita income has increased from Rs 11,000 to Rs 1.4 lakh. Our budget has increased from Rs 1 lakh crore in 2012 and Rs 2 lakh crore in 2020-21 to Rs 3.14 lakh crore in 2023-24,” said Chouhan.