New initiatives for MSME

New initiatives for Micro, Small and Medium Enterprise (MSME) sector will be launched shortly based on the report of the Task Force on MSME, said President Pratibha Patil today in her address to Parliament.

She said that the MSME sector continues to hold its dynamism in terms of production, employment generation and contribution to exports.

The MSME sector contributes 8 percent of the country's GDP, 45 percent of the manufactured output and 40 percent of its exports.

The task force on the MSME sector headed by T K A Nair, Principal Secretary to Prime Minister, Manmohan Singh, had submitted its report containing several recommendations last month. The suggestions covered areas like easy and affordable credit, government procurement from MSMEs and simplification of labour laws. The task force also suggested setting up of a exchange for the SMEs.

On the Khadi sector, which employees over one crore people, she said, "The khadi sector is a very large employer, with khadi and village units giving employment to over one crore persons. A comprehensive Khadi Reform Programme has been launched."