PM Modi roles out incentives for MSMEs: Here are the top announcements

Smart cities, IT to feature in Modi’s talks with East Asia Summit partners

Introducing the Micro, Small and Medium Enterprises (MSME) Support and Outreach programme, Prime Minister Narendra Modi Friday announced the 12 historic decisions including 59-minute loan portal for sanction of up to Rs 1 crore for small and medium enterprises. He said the move will boost small and medium enterprises.

“12 major decisions taken by the Central government for MSMEs Sector are proof that when after breaking silos, collective initiatives are taken, collective responsibilities are fulfilled and collective decisions are taken, it creates a comprehensive impact,” he said. The prime minister also stated about India’s jump in Ease of Doing Business Ranking. “It’s a matter of pride for us that India has taken a high jump of 23 ranks in “Ease of Doing Business” ranking this time. 4 years ago, when this govt wasn’t in power, we were at the 142nd position. Today we are at 77th rank and I believe that “top 50″ isn’t too far from our reach,” he said.

Finance Minister Arun Jaitley and Union Minister Giriraj Singh were also present at the event. Expressing that India would become the world’s fifth biggest economy in 2019 and among the top three in the coming years, Jaitley said, “Since the Narendra Modi-led government took over about four years ago, India has moved from the ninth to sixth position in the global economic landscape.”

Here are the 12 key announcements made by PM Modi for MSME sector today:

  1. PM Modi announced the launch of 59-minute loan portal for sanction of up to Rs 1 crore for small and medium enterprises. He said, “I dedicate 59-minute loan approval portal to you and it has started benefiting the MSMEs businessmen already.”
  2. The Prime Minister also said that the GST-registered MSMEs will get a 2 percent rebate on an incremental loan of up to Rs 1 crore.
  3. Talking about the Interest subvention, PM Modi said the government has decided to increase interest Subvention on pre and post shipment credit for exports by MSMEs from 3 percent to 5 percent.
  4. “It is now mandatory that all the companies with a turnover of more than Rs 500 crore will have to join TReDS platform, that is Trade Receivables e- Discounting System. So that MSMEs doesn’t face trouble in cash flow,” PM Modi said.
  5. PM Modi announced that mandatory sourcing by PSUs from MSMEs increased to 25 percent from the previous limit of 20 percent.
  6. He said that government companies to buy at least 3 percent of their purchases from women entrepreneurs.
  7. “It has been made important for the companies to take GeM (Government e-Marketplace) membership now. Not only this, but the companies will now register its all MSME vendors on this platform, which will also benefit the MSME,” he said.
  8. Modi said that Rs 6000 crore package for the technological upgradation in connection with MSME. 20, 000 hubs and 100 tool rooms will be developed around the country for this, he said.
  9. PM Modi also said that MSME sector’s ease of doing business to pharma companies. Reform of processes will help small and medium enterprises (MSMEs), he said.
  10. He announced Environment clearance and ease of self-certification.
  11. “MSMEs will have to file just one annual return on eight labor laws and 10 central rules,” he said.
  12. Modi said that the govt has made a big change to Companies Act and provided relief to MSMEs from legal complications.
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