MSME Ministry mulling special package for sector

The Ministry of Micro, Small and Medium Enterprises (MSME) is working on a special package for welfare of the sector, Minister of State (Independent Charge), Ministry of MSME, K H Muniyappa, Monday told media at a press conference in New Delhi.

"I have asked the officials of my ministry to work on a special package, which I will then take it to the Cabinet for their consideration and guidance," said Muniyappa.

The minister in his address mentioned that the MSME sector's contribution in India's overall exports has come down to 36 percent from 40 percent earlier. He said, "The MSME sector contributes around 9 percent of GDP and accounts for around 45 percent of the manufacturing output and around 36 percent of total value of exports."

"Whilst all this sounds very good, we are still not satisfied and look forward to further support from the entire Government," he added.

To encourage new and young entrepreneurs, Muniyappa said, "We have decided to setup 100 new enterprises in every District of the country under the Prime Minister's Employment Generation Programme (PMEGP)."

"My Ministry as allocated over Rs. 8000 crore in the 12th Plan under PMEGP to set up about 3.39 lakh enterprise, which would create 27.12 lakhs employment opportunities. This would help set up more micro and small units in the country which will generate more employment opportunities," he added.

In the 12th Five-Year Plan, the Budget allocation for the sector has been more than doubled to Rs 24,000 crore from Rs 11,000 crore in the last plan period, he said.