States will be ranked basis their efforts to promote MSMEs : 27-02-2020

The government is working to rank States on the basis of their efforts to promote micro, small and medium enterprises (MSMEs), a senior official said. “We are making a state ranking system where we will rank States, we are in talks with Niti Aayog for this,” MSME Secretary AK Panda said at the National MSME Awards ceremony here on Wednesday.

“We will rank states on the basis of 4 E’s. Employment generation, for enterprise creation, third, exports, and fourth for ease of doing business,” Panda said. “Ultimately, the action is taking place in states,” he said. Panda added that MSMEs are increasingly registering themselves on the Goods and Services Tax network (GSTN), which is bringing them into the formal sector.

“MSMEs account for the maximum number of registered entities on GSTN. There is a silent, but massive formalisation of our economy which is happening because of GST,” Panda said. Panda said that while MSMEs contribute around 45% to the country’s exports, there are only 33,000 registered MSME exporters, and that many such enterprises route their products through larger export houses.

The ministry is developing a platform for providing a consolidated database of export-related information for MSMEs. “We are also developing a global market intelligence system. All export related info will be put in one place, in very simple, intelligible language,” Panda said. The information will be available in 22 languages, he said.

Panda added that growth of MSMEs is crucial to the $5 trillion-economy goal of the Indian government. The ministry has also set itself a target of increasing MSMEs’ contribution to the country’s GDP to 50%, from 29% at present.

Source : PTI