Government Looking At MSME Sector As A Major Growth Engine And Source Of Generating Employment: Nitin Gadkari

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The Union Minister for Micro, Small & Medium Enterprises and Road Transport & Highways, Nitin Gadkari addressed MSME challenges and recommendations while delivering keynote address - "Roadmap for Growth of MSMEs" at the event organized by IMC Chamber of Commerce and Industry. Speaking at the event, the Union Minister highlighted that the MSME sector has a huge potential for generating income and employment, eradication of poverty, boosting export and contributing to economic growth. The present Government under the leadership of Prime Minister Narendra Modi is looking at this sector as a major growth engine and source of generating employment.

He further told that currently MSME contributes 29 % to the country's GDP and the government intends to take this to 50 % in the next 5 years. The sector gives employment to about 11 Crore people currently, we will take this to 15 crore in the next 5 years. The government aims to generate 50 lakh jobs through Khadi. Added, that focus will be on 115 aspirational districts.

To achieve this, we need to create new channels for funding, make the sector investor friendly, bring in technological innovations, and reduce logistics cost to make our products competitive, provide adequate skilling and market support. There is a lot of scope for diversification in the MSME sector. Honey production, bamboo, bio-fuel production, fisheries, dairy, Agarbatti making, hydroponics, water transport like Ro-Ro, Ro-Pax, e-transport, mechanized fishing trawlers etc. can be new areas for such ventures.

While highlighting importance of technology and innovation, he emphasised upon reduction of cost for logistics where he sighted example of use of waterways and promoting electric and bio fuels instead of diesel vehicles to bring down logistics costs. Further, told that Government is also looking at import substitution. Recently, a medical equipment hub has started functioning in Vishakhapatnam which will bring down huge import of medical equipment worth nearly Rs 50,000 crore.

Union Minister told that meetings are being held with ADB, World Bank and KfW for their cooperation so as to provide low cost funds for the MSME sector and have got very positive response. He called upon stakeholders to suggest ways and means to cut down red-tapeism and also told that the Ministry is working to build Bank of Ideas and Innovations wherein all stakeholders should contribute. Also, that Government is developing an e-market portal like Alibaba, which will be called as Bharat Craft. This will provide a direct interface between buyers and sellers. In the next 2-3 years this portal will bring a turnover of about Rs 10 lakh crore to the MSME sector.

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