MSME sector crucial for India's economic progress: PM Narendra Modi

Prime Minister Narendra Modi on Wednesday hailed the Cabinet decision to approve a World Bank-assisted Rs 6,062 crore funding programme for the small and medium businesses, saying the government is taking many steps to add new energy into the MSME sector and support local enterprise.

"The MSME Sector is crucial for India's economic progress. Our government is taking many steps to add new energy into the sector and support local enterprise. Today's Cabinet decision is a step in this direction," he tweeted.

The Union Cabinet approved a World Bank-assisted Rs 6,062 crore funding programme for the small and medium businesses to help improve their access to market and credit.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Modi, approved the Rs 6,062.45 crore or USD 808 million 'Raising and Accelerating MSM Performance' (RAMP) for the micro, small and medium enterprises (MSMEs), an official release said.

RAMP will commence in FY23, it said.

Of the total outlay under the programme, Rs 3,750 crore (USD 500 million) will come from World Bank loan, and the remaining Rs 2,312.45 crore will be funded by the central government.