Question : Employment Generation under MSME Sector

(a) whether Micro, Small and Medium Enterprises (MSMEs) sector has emerged as a highly vibrant and dynamic sector of the Indian economy and has immense potential in employment generation and if so, the details thereof;

(b) whether large number of employment opportunities are created with use of relatively less capital in the MSME sector and if so, the details thereof, State-wise;

(c) whether there is ambiguity on the data of employment generated through MSME sector, if so, the facts thereof;

(d) the number of jobs created in MSME sector during the last three years including the current year, year-wise and target set to create more jobs jobs and its likely impact of MSMEs;

(e) whether the Government is taking any measures to make the MSMEs a major attraction for investment and job creation in the country and if so, the response of the Government in this regard;

(f) whether to boost the MSME sector, a separate policy and sector-wise policy is required and if so, the steps taken by the Union Government to frame separate policy and sector-wise policy to boost the MSMEs; and

(g) whether the sector is resolving the problem of lending from the banking sector and if so, the details thereof?

MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI NITIN GADKARI)

(a): Yes. As per the 73rd Round of National Sample Survey (NSS), conducted by National Sample Survey Office, Ministry of Statistics & Programme Implementation during the period 2015-16, the estimated number of workers in unincorporated non-agriculture MSMEs in the country engaged in different economic activities excluding the MSMEs registered under (a) Sections 2m(i) and 2m(ii) of the Factories Act, 1948, (b) Companies Act, 1956 and (c) Construction activities falling under Section F of National Industrial Classification (NIC), 2008, are 11.10 crore.

Under the Prime Minister’s Employment Generation Programme (PMEGP,) the estimated employment generated (number of persons) in micro enterprises during the years 2014-15, 2015-16, 2016-17, 2017-18 and 2018-19 are 3.58 lakhs, 3.23 lakhs, 4.08 lakhs, 3.87 lakhs and 5.87 lakhs, respectively.

(b) to (d): The large number of employment opportunities are created with use of relatively less capital in the MSME sector. Ministry of Micro, Small and Medium Enterprises implements Prime Minister’s Employment Generation Programme (PMEGP), which is a credit-linked subsidy programme aimed at generating self-employment opportunities. The State/UT-wise details of Target set for creation of employment opportunities and estimated employment generated through setting up of new micro-enterprises under PMEGP during last three years are given annexure-I.

(e) & (f): The Ministry of Micro, Small and Medium Enterprises (MSMEs) implements various schemes to boost MSMEs and job creation in the MSMEs sector, which include Prime Minister’s Employment Generation Programme (PMEGP), Micro and Small Enterprises-Cluster Development Programme (MSE-CDP), Scheme for Promotion of MSMEs in North Eastern Region and Sikkim, Tool Rooms and Technology Centers, Mission Solar Charkha (MSC), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), Procurement and Marketing Support Scheme, Entrepreneurship Skill Development Programme (ESDP), Credit Guarantee Scheme for Micro and Small Enterprises (MSEs) and Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS).

(g): As per the data received from the Reserve Bank of India (RBI), the outstanding credit to Micro, Small and Medium Enterprise (MSME) sector by all Scheduled Commercial Banks during the last three years has increased. The credit flow to MSME sector by all Scheduled Commercial Banks during the last 3 years is given below:
<pre>
Year ended Amount Outstanding (in Rs. Crore)
March 2017 1070129.48
March 2018 1149353.83
March 2019 1497687.10
</pre>

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) was launched by the Government of India to make available collateral-free credit to the micro and small enterprise sector. The number and amount of Guarantees approved under the CGTMSE during the last 2 years is given below:
<pre>
Year No. of Credit Facilities Approved (in lakhs) Amount of Guarantees Approved
( in Rs. crore)
2017-18 2.63 19065.91
2018-19 4.36 30168.57
</pre>

This has also helped in better credit flow to the micro and small enterprises.