Ease of Doing Business for MSMEs: The annual report continued to cite data on the number of MSMEs in India from the National Sample Survey (NSS) 73rd round, conducted by the National Sample Survey Office during FY16. There were 6.33 crore unincorporated non-agriculture MSMEs in the country.
Ease of Doing Business for MSMEs: The annual report for the year 2021-22 has been released by the Ministry of Micro, Small and Medium Enterprises (MSMEs), sharing data related to expenditure on major schemes for the nine-month period ended December 2021. Even as the budgetary allocation for the MSME Ministry was more than doubled to Rs 15,700 crore for FY22 from Rs 7,572 crore in FY21, the actual expenditure on multiple MSME schemes remained meagre, the annual report showed.
For instance, the Entrepreneurship and Skill Development Programmes (ESDP), which aimed to promote new enterprises, build the capacity of existing MSMEs and inculcate entrepreneurial culture, incurred Rs 1.83 crore expenditure out of Rs 10 crore allocated to it. A total of 15,599 aspiring entrepreneurs were part of 315 programmes related to awareness about entrepreneurship, skill development, business management, and more.
Likewise, the MSME-Competitive scheme, which was one of the components of the MSME Champions scheme (erstwhile Credit Linked Capital Subsidy and Technology Up-gradation Scheme (CLCS- TUS) for MSMEs’ technology upgradation and competitiveness, reported Rs 1.61 crore expenditure out of Rs 19.43 crore allocated. The ASPIRE scheme, which worked on setting up business incubators and looked at the commercialisation of business ideas, also reported only Rs 4.31 crore in expenditure out of Rs 15 crore allocated.
Similarly, MSME-Innovative (Incubation), MSME-Innovation (Design), and MSME-Innovative (IPR) schemes that catered to awareness and development of incubation, product design, and intellectual property rights ecosystem for MSMEs saw an expenditure of Rs 1.52 crore, Rs 2.36 crore, and Rs 0.14 crore out of the allocated Rs 23.16 crore, Rs 15.21 crore, and Rs 25.57 crore respectively. The MSME Sustainable certification scheme to promote Zero Defect Zero Effect practices among MSMEs witnessed nil expenditure out of Rs 16 crore allocated.
DC-MSME Office and MSME Ministry weren’t immediately available for comments for this story.
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However, other schemes had reported relatively higher expenditure last year. For example, the Prime Minister’s Employment Generation Programme (PMEGP), which aimed to generate employment opportunities through setting up of new ventures or micro enterprises, had spent 71 per cent or Rs 1,785 crore till December end out of the Rs 2,500 allocated. Scheme of Fund for Regeneration of Traditional Industries (SFURTI) also spent 91 per cent or Rs 154.81 crore spent out of Rs 170 crore allocated. Scheme for providing financial assistance to Khadi institutions under Market Development Assistance (MDA) scheme had also spent 83 per cent of the allocated amount.
The overall expenditure of the MSME Ministry was 68 per cent (Rs 10,761.72) till December 2021 out of the Rs 15,700 crore allocated. Division wise, the SME division in the ministry had spent 52 per cent (Rs 109.11 crore) of Rs 208.65 crore revised estimates (RE) in the budget while the Agro and Rural Industry (ARI) division had incurred Rs 58 per cent (Rs 2,446.58 crore) expenditure out of Rs 4,202 crore RE. The DC-MSME office had spent the highest 72.6 per cent (Rs 8,206 crore) out of Rs 11,288 crore RE.
Importantly, the annual report continued to cite data on the number of MSMEs from the National Sample Survey (NSS) 73rd round, conducted by the National Sample Survey Office during FY16. There were 6.33 crore unincorporated non-agriculture MSMEs in the country, of which 1.96 crore were engaged in manufacturing, 3,000 were in non-captive electricity generation and transmission, 2.30 crore in trade, and 2.06 crore in other services. 51 per cent were rural MSMEs and 49 per cent were urban units. In terms of gender, out of 6.08 crore proprietary MSMEs, 79.63 per cent were owned by men and 20.37 per cent units were owned by women.
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