MSME that constitutes by almost 9 percent to GDP needs more funds for sector
The Union MSME Minister, Virbhadra Singh has asked the Finance Ministry to allocate more funds for promotion of MSMEs during the 12th Five-Year Plan (2012-2017).
"To expand the micro, small and medium enterprise (MSME) sector in the next Plan period, we need more funds. We have talked to the Finance Ministry and also discussed with the cabinet in this regard," Singh told media on the sidelines of an event in New Delhi on Wednesday.
Singh stressed on the importance of the MSME sector, which contributes nearly 8.72 percent to the gross domestic product (GDP) with 45 percent share of the entire manufacturing output and has a 30.80 percent share in exports for the year 2007-08 (latest available). More than 6 crore people are employed in the sector and it creates employment at one-fifth the cost of large industries.
The minister stated that this in his address that the two most important factors that can affect the growth rates of the SMEs are technology and availability of finance.
He noted that expansion of the MSME sector would be possible if both national and private banks provide funds to support various schemes.
"MSME is one of the most important sector after agriculture which provides maximum employment," the minister said in his address.