New Delhi

Prime Minister Narendra Modi on Tuesday said that the MSME (micro, small, and medium enterprises) sector is the backbone of India's manufacturing and industrial growth and the government is committed to nurturing and strengthening this sector to promote inclusive growth.

Addressing, via video conferencing, post-Budget webinars on MSMEs as an Engine of Growth; Manufacturing, Exports and Nuclear Energy Missions; Regulatory, Investment and Ease of Doing Business reforms, the Prime Minister also pointed out that in several sectors, the government has taken steps beyond what experts had anticipated. He also highlighted that significant decisions have been made regarding manufacturing and export in this budget.

He highlighted that in 2020, the government made a significant decision to revise the definition of MSMEs after 14 years, which eliminated the fear among MSMEs that they would lose government benefits if they grew.

He noted that the number of MSMEs in the country has increased to over 6 crore, providing employment opportunities to crores. Modi emphasized that in this budget, the definition of MSMEs has been further expanded to instil confidence in their continuous growth. This will create more employment opportunities for the youth, he said, highlighting that the biggest problem faced by MSMEs was the difficulty in obtaining loans.

He added that ten years ago, MSMEs received loans worth approximately Rs 12 lakh crore, which has now increased to around Rs 30 lakh crore. The Prime Minister announced that in this budget, the guarantee cover for MSME loans has been doubled to Rs 20 crore. Additionally, customised credit cards with a limit of Rs 5 lakh will be provided to meet working capital needs.

Pointing out that the country has witnessed consistent government policies for over a decade, the Prime Minister highlighted that in the past 10 years, India had shown a commitment to reforms, financial discipline, transparency, and inclusive growth. He emphasised that the assurance of consistency and reforms has brought new confidence within the industry.

He assured every stakeholder in manufacturing and export that this consistency will continue in the coming years. Encouraging stakeholders to take bold steps and open new avenues for manufacturing and export for the country, PM Modi highlighted that every country in the world wants to strengthen its economic partnership with India. He urged the manufacturing sector to take full advantage of this partnership.

"Stable policy and a better business environment are crucial for the development of any country”, said the Prime Minister, highlighting that a few years ago, the government introduced the Jan Vishwas Act and made efforts to reduce compliances. Over 40,000 compliances were eliminated at both central and state levels, promoting ease of doing business," he noted.

Emphasising that this exercise should continue, the Prime Minister mentioned that the government had introduced simplified income tax provisions and is working on the Jan Vishwas 2.0 Bill.

PM Modi also said: "The world is currently experiencing political uncertainty, but the entire world views India as a growth centre and has proven its resilience in challenging situations such as the Covid crisis."

Pointing out that disruptions in the supply chain affect the global economy, and the world needs reliable partners that produce high-quality products and ensure reliable supply, he urged India Inc. not to be mere spectators but to actively seek their role and carve out opportunities. He pointed out that it is easier today compared to the past, as the country has friendly policies and the government stands shoulder-to-shoulder with the industry.

The Prime Minister called for a strong resolve, objectivity in seeking opportunities in the global supply chain, and accepting challenges. He emphasised that if every industry takes one step forward, collectively, they can achieve significant progress.

Highlighting that 14 sectors were currently benefiting from the PLI scheme, the Prime Minister said that under the scheme, more than 750 units have been approved, resulting in an investment of over Rs 1.5 lakh crore, production worth over Rs 13 lakh crore, and exports exceeding Rs 5 lakh crore. He emphasized that this demonstrates how entrepreneurs can advance in new areas when given opportunities.

PM Modi announced the decision to launch two missions to promote manufacturing and export. He highlighted the focus on better technology and quality products, as well as the emphasis on skilling to reduce costs. He urged all stakeholders to identify new products in demand globally that can be manufactured in India and encouraged them to approach countries with export potential strategically.

"R&D has played a crucial role in India's manufacturing journey and needs further advancement and acceleration," remarked the Prime Minister. He highlighted that through R&D, the focus can be on innovative products and value addition to existing products.

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Emphasising that the role of states is crucial in boosting investment, PM Modi said the more states promote ease of doing business, the more investors they will attract.