PM Modi Participated in ‘Udyami Bharat’ Programme; Launched Key Initiatives

On 30th June 2022, Prime Minister(PM) Narendra Modi participated in the ‘Udyami Bharat’ programme organised at the Vigyan Bhawan, New Delhi, Delhi. He also launched various key initiatives to develop the Micro, Small & Medium Enterprise (MSME) sector. The initiatives are

• ‘Raising and Accelerating MSME Performance’ (RAMP) scheme, 
• ‘Capacity Building of First-Time MSME Exporters’ (CBFTE) scheme
• New features of the Prime Minister’s Employment Generation Programme – (PMEGP)

Key People:

Narayan Tatu Rane, Union Minister, Ministry of MSMEs(MoMSMEs), Bhanu Pratap Singh Verma, Minister of State, MoMSMEs, along with MSME stakeholders from across India participated in the programme.

Background of Udyami Bharat Programme:

The “Udyami Bharat” programme reflects the dedication of the government of India(GoI) towards the empowerment of the MSME sector.

Note: The GoI has launched several initiatives like Pradhan Mantri Mudra Yojana (PMMY), Emergency Credit Line Guarantee Scheme, and Scheme of Fund for Regeneration of Traditional Industries (SFURTI) to offer necessary and timely support to the MSME sector.

Highlights of the event:

i.PM Modi digitally transferred assistance to beneficiaries of PMEGP for 2022-23

ii.He also announced the results of the MSME Idea Hackathon 2022.

iii.He also distributed the prise of National MSME Awards, 2022 and issued Digital Equity Certificates to 75 MSMEs in Self Reliant India (SRI) Fund.

Key Points:

i.In the past few years, MSME’s export constitutes around 48% of the total exports of India.

ii.PM Modi has transferred over Rs 500 crore to around 18,000 MSMEs and around Rs 1,400 crore has been released under Rs 50,000 crore SRI Fund for MSMEs.

iii.PM Modi stated that the MSME sector plays a major role in the development of India’s economy. Around one-third of India’s Gross Domestic Product (GDP) is contributed by the MSME sector.

iv. In FY22, India’s exports significantly increased to USD 422 billion from their previous peak of USD 330 billion.

Additional info:

• To enhance the MSME sector, the GoI has increased budget allocation for this sector by more than 650% in the last 8 years.
• According to the Prime Minister, MSME stands for “Maximum Support to Micro, Small, and Medium Enterprises” for the Government of India.
• The government has decided that no global tenders will be undertaken for orders up to Rs. 200 crore as a reservation for MSMEs.

Raising and Accelerating MSME Performance (RAMP) scheme:

PM Modi launched the “Raising and Accelerating MSME Performance (RAMP) scheme”, World Bank (WB) assisted central government programme, with an outlay of Rs 6,062.45-crore for MSMEs.

• The 5-year RAMP scheme will begin in the current financial year(FY) 2022-23
• The scheme aims to improve the implementation capacity and coverage of MSMEs in the states, with impact enhancement of existing MSME schemes.

Background:

i.The scheme was initially announced in 2020 by the government of India and the World Bank offers business recovery support to the MSMEs affected by the COVDI-19 pandemic.

ii.In June 2021, the World Bank stated that RAMP targets improvements in the performance of 5.55 lakh MSMEs.

iii.An apex National MSME Council headed by the Minister for MSME will undertake RAMP’s monitoring and policy overview.

Key Points:

i.Out of the total outlay of the scheme, the World Bank approved Rs 3750 crore in June 2021. The remaining Rs 2312.45 crore outlay would be funded by the government of India.

ii.The monetary support will be routed into the budget of MoMSMEs against ‘Disbursement Linked Indicators’ (DLIs) to support the ministry’s ongoing MSME programmes.

CBFTE Scheme for 1st time exporters:

i.PM Modi also launched the ‘Capacity Building of First-Time MSME Exporters’ (CBFTE) scheme to ease the export process for first-time exporters in terms of monetary support, certification-related support, and others.

ii.The scheme aims to boost the quality of MSME products and services to match international standards for the global market.

iii.The scheme is intended to support the MSMEs to improve their participation in the global value chain and realise the potential of exports.

New Features of PMEGP:

The new features of the Prime Minister’s Employment Generation Programme (PMEGP) include,

• An increase in the maximum project cost to Rs 50 lakhs (from Rs 25 lakhs) for the manufacturing sector and Rs 20 lakhs (from Rs 10 lakhs) in the service sector
• Inclusion of applicants from Aspirational districts and Transgenders in the Special Category applicants for availing higher subsidies.
• The new features of the programme will also offer handholding support to the applicants/entrepreneurs through the engagement of banking, technical and marketing experts.

Additional info:

There is no global tender will be floated by the government or its agencies for the procurement of goods and services if the value is less than Rs 200 crore.

MSME Idea Hackathon 2022:

Aim: To promote and support the untapped creativity of individuals, promoting the adoption of the latest technologies and innovation among MSMEs

• The selected incubate ideas from the Hackathon will get funding support of up to Rs 15 lakh per approved idea.

National MSME Awards 2022 

i.The MoMSMEs have selected the winners of the National MSME Awards 2022, which recognises the outstanding performance of the Enterprises/ States/ Aspirational Districts/ Banks in the MSME sector under various categories of MSME Awards.

ii.The award categories include Manufacturing entrepreneurship, Service entrepreneurship, Special Category Enterprises, and State/UTs, Aspirational Districts and Banks for outstanding contributions for the promotion and development of the MSME sector

Winners Detail:-

• The MSME department of the government of Odisha has won the 1st Prize in National MSME Awards-2022 under States/Union Territories(UTs) category for its various developmental initiatives taken up for the development of MSMEs.
• Virudhunagar district of Tamil Nadu has won the 1st prize of the National MSME Awards-2022 under the Aspirational Districts category for its contribution to the promotion and development of the MSME sector. District collector Meghanath Reddy received the prize from PM Modi.

Winners of National MSME Awards 2022:

Click here to access the details of all winners of National MSME Award 2022 

About Ministry of Micro, Small and Medium Enterprises:

Union Minister– Narayan Tatu Rane (Rajya Sabha- Maharashtra)
Minister of State(MoS)- Bhanu Pratap Singh Verma (Constituency- Jalaun, Uttar Pradesh)