Finance Minister Nirmala Sitharaman and MSME Minister Address Industry Needs
The budget now gives special support to small businesses (MSMEs).
SIDBI will start giving direct loans to very small businesses to help them get funding more easily.
There will be interaction programs with 250 MSME groups across India, starting with Udaipur’s marble industry.
MSMEs are important for job creation and contribute 30% to India’s economy.
There will be interaction programs with 250 MSME groups across India, starting with Udaipur’s marble industry.
Union Finance Minister and Corporate Affairs of India, Nirmala Sitharaman highlighted the crucial role of Micro, Small, and Medium Enterprises (MSMEs) in achieving India's vision of becoming a developed country by 2047. Speaking at an event at Marble Bhavan in Sukher Industrial Area, Udaipur, on Thursday, August 22,2024, she emphasized that the budget has given special priority to MSMEs.
The event was presided over by Minister of Micro, Small, and Medium Enterprises Shri Jitan Ram Manjhi. Also present were Finance Secretary Shri M. Nagaraju, SIDBI Chairman Shri Manoj Mittal, and Member of Parliament Dr. Manna Lal Rawat.
MSMEs are Vital for Realizing the Vision of 2047
Finance Minister Sitharaman praised Mewar's contribution to India’s culture and prosperity. She stressed the importance of grassroots communication for implementing budget measures and noted that MSMEs are vital for realizing the vision of 2047. Interaction programs with 250 MSME clusters across the country are planned, starting with the marble cluster in Udaipur. She also announced that the Small Industries Development Bank of India (SIDBI) will now provide direct loans to micro-industries, easing access to funding.
MSMEs in Reducing Unemployment
Shri Jitan Ram Manjhi spoke about the role of MSMEs in reducing unemployment. He noted that micro and small industries are the backbone of India’s economy, contributing 30% to GDP and employing 20 crore people. India, under the leadership of the Prime Minister, is currently the fifth-largest economy and is expected to soon become the third-largest. He highlighted that while global growth is at 3.2%, India is growing at 7%.
Manjhi also mentioned that the credit provided by the MSME Ministry to banks increased from Rs 10.3 lakh crore in 2014 to Rs 22.6 lakh crore in 2023. This year, Mudra loan amounts have been doubled from Rs 10 lakh to Rs 20 lakh. He emphasized that focusing on micro-industries is crucial for advancing to developed nation status.
Finance Secretary Shri M. Nagaraju affirmed the significant contribution of MSMEs to employment and GDP. He reiterated the central government's commitment to achieving a developed India by 2047 and stressed that job creation is a top priority.
During the event, businessmen from the marble cluster, including Pankaj Gangawat, Rakesh Bhanawat, Umesh Nagauri, Veermadev Krishnaawat, and Neeraj Sharma, raised issues related to the marble industry and taxation. These concerns were recorded by officials from the Finance and MSME departments.
An MoU was signed between SIDBI and the Udaipur Marble Association to support the marble industry in Udaipur district. The MoU includes provisions for financial assistance, training, and other support for marble units.