CRISIL SME TRACKER: Budget 2018's focus on MSMEs to spur job creation

The government has in Budget 2018-19 rightly focused on micro, small and medium enterprises (MSMEs) as the preferred route for rapid job creation and self-employment. The MSME sector employs over 111 million people and contributes nearly 31 per cent of India’s GDP.

Sharpening the focus on the promotion of self-employment, the government has increased funding for the Prime Minister’s Employment Generation Programme to Rs 18.01 billion in the financial year 2018-19, from Rs 11.95 billion (revised) in fiscal 2017-18.

Similarly, the target for the flagship Pradhan Mantri Mudra Yojana — which extends loans of up to Rs 1 million to