Working on MSMEs reforms to push its GDP share to 50%: Nitin Gadkari
The ministry is working on the recommendations of the Sinha Committee to help reform the MSME sector, which aims to contribute 50% of the GDP, from 29% now, MSME minister Nitin Gadkari said.
“We need to find Indian options for things that are being imported,” the Union minister for micro, small and medium enterprises (MSME) said at the India MSE Awards in New Delhi on Wednesday. “Using our technology, not only will we manufacture these commodities, but also market them across the world.”
The ministry is working on the recommendations of the Sinha Committee to help reform the MSME sector, which aims to contribute 50% of the GDP, from 29% now. The government will create 50 million jobs in the sector over the next five years, Gadkari said.
According to Thakur, the government had cleared around 90% of good and services tax (GST) dues of MSMEs since September 23, amounting to ₹9,790 crore. It is committed to clear all GST dues within 60 days going forward. It is also in talks with public sector banks to secure credit for MSMEs against unpaid invoices by large corporates.
Finance minister Nirmala Sitharaman had, earlier this week, said corporate affairs ministry data had pegged the overdue payments by companies to MSMEs at ₹40,000 crore.
Thakur said the government was aware that the Factoring Act needed to be amended so more non-banking finance companies (NBFCs) could join the Trade Receivables Electronic Discounting System (TReDS) platform and offer credit to MSMEs against dues.
While Thakur offered small and medium enterprises a silver lining on funds flow, Gadkari stressed on manufacturing and trade.
India recently slapped a 30% duty on incense sticks that were being imported from China so that local bamboo industry in Arunachal Pradesh and Meghalaya could be promoted. “If the technology is good, product is good with 100% quality, good packaging, marketing and timely delivery… then this will help in increasing our exports,” Gadkari said.
MSMEs, khadi and village industries and handicraft will play a crucial role in making India a $5-trillion economy, Gadkari said, adding that policy-making should strike a balance between rural and urban development.
“This is my gut feeling, excuse me for this, but it takes a lot of effort in having voices from the rural areas reach Delhi-Mumbai. Even the policies that are made are urban-centric,” said Gadkari, who also manages the road transport and highways portfolio.