MSMEs contribution to GDP to rise to 10%: Fin Secy

The Finance Ministry today said the micro, small and medium enterprises are expected to raise their contribution to GDP to 10 per cent soon from the current level of eight per cent.

"This sector plays a very important part in India's growth story. From 3-4 per cent to 6 per cent and to 8-9 per cent now ... Growth story has to move and will move to the higher level of about 10 per cent soon and that is what the country needs," Finance Secretary Ashok Chawla said at the AIMA Global Convention on MSMEs here.

Stressing that the sector needs support, Chawla said now is the time that the sector adopts best practices. "There is a need for technological upgradation, skill development and promotion of the products through marketing."

The targeted delivery of credit should reach to the micro sector. Commercial banks should ensure easy availability of credit to the sector, he added.

Underlining the importance of the sector, Dinesh Rai, Secretary in the Ministry of Micro, Small and Medium Enterprises said that the "sector employs 60 million people and contributes 40 per cent to total exports".