Indore: MSMEs are an important contributor to economy

CA Kirti Joshi explained the role of MSMEs in the economy of the country

Staff ReporterUpdated: Tuesday, August 30, 2022, 01:55 AM IST
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CA Kirti Joshi |

Indore (Madhya Pradesh): CA Kirti Joshi has said that MSMEs are an important contributor to India’s economy. “If we talk about GDP, MSMEs contributes about 30 per cent to the country’s total GDP and about 35 per cent to the country’s total exports. MSMEs provide employment to more than 11 crore people in the country,” he said. Senior chartered accountant and an expert on GST law, Joshi, was addressing a seminar organised by the CA, Indore Branch, of ICAI here on Monday. The subject of the seminar was ‘Incentives for MSMEs and Role of CAs’.

Joshi said that over 60 per cent of the country’s total population was engaged in agriculture and their per capita income was about Rs 55,000 annually. If India is to be taken to the Rs 10-trillion-economy league, a larger percentage of the population will have to be shifted from agriculture to manufacturing. Only then will India be able to achieve this magic figure.

Gaurav Goyal, assistant director of the MSME department, said that, at present, 60,785 enterprises were registered on the enterprise portal in the city and 4.7 lakh people were registered in entire Madhya Pradesh. There are a total of 1.05 crore registered entrepreneurs in the country, compared to which the figure in the city is very low. Currently, there are more than 6 crore MSMEs in the country, but many are deprived of the facilities available to MSME units because of a lack of knowledge among entrepreneurs.

At present, the government has changed the definition of MSMEs; now, traders, too, can take advantage of many facilities by registering themselves as MSME units. MSMEs are also given exemption in tender fee and earn money for participating in government tenders. Also, it is mandatory for government undertakings to buy 25 per cent of their total purchases from MSMEs. While promoting the digital revolution, the government has to do its procurement only through the Government-E-Market (GEM) portal.

Amit Sethi from the SIDBI said that, considering the GST turnover, civil and financial, loans of up to Rs 50 lakhs could be made available to MSMEs immediately. The SIDBI is the nodal agency for all types of subsidy schemes. CIBIL is the most-taken-care-of factor while granting loans.

Vinod Vyas, an officer of the National Small Industries Corporation (NSIC), said details regarding which government tenders had been called before, whatever tenders had been awarded and at what rates they had gone were all available on the NSIC portal MSME Mart, keeping in mind that MSMEs can participate in the tender. With the help of this portal, MSMEs can get huge opportunities related to exports.

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