MSME will get global recognition, loan will be available through UPI; Know the government's plan

The MSME Ministry and NITI Aayog are currently engaged in the exercise of transforming Indian MSMEs into world-class ones like in Germany. The government is keen on positioning MSMEs in the global value chain so that their contribution to exports increases.

Keeping this in mind, nowadays a framework is being developed for MSMEs, especially medium enterprises. In last month's budget, it was declared to make MSMEs worldwide have a supply chain. MSMEs account for 55 percent of Germany's GDP. MSMEs contribute around 30 percent of the Indian GDP.

Germany, according to experts, is an MSME-led economy and this has been possible due to the increased adaptation of technology among MSMEs. Indian MSMEs are yet to catch up with the European countries in the use of technology. Therefore, a comprehensive survey on the usage of technology in the MSME sector is being conducted by NITI Aayog and also efforts are underway to identify whether the technology used in Indian MSMEs is at par with the international level or not.

A comparative study of Indian MSMEs with European countries is being done in adopting technology. The attitude of MSMEs at the global level is also being analyzed so that Indian MSMEs can be prepared in view of that.

According to sources, special focus is being laid on making medium enterprises a part of the global supply chain. In the budget presented in February, the definition of MSMEs was changed and now those doing annual turnover of Rs 100 to 500 crores will come under the medium category.

According to sources, the focus will be on medium-category credit because they have to face many challenges regarding credit. However, an attempt has been made to end these challenges in this time's budget. All the schemes related to MSMEs will be simplified by combining them in one place. So that they can easily apply for the scheme. Cluster-based industrial hubs will also be developed.

On the other hand, by the end of this month, the process of giving loans to MSMEs through UPI can start. This facility will be mainly for micro-entrepreneurs. Finance Minister Nirmala Sitharaman had announced this in the budget presented in July last year. A separate portal has been prepared for giving loans through UPI. SBI has started giving loans through UPI as a pilot. All the banks were preparing the framework for giving loans through UPI.