Government sets up Inter-ministerial Committee to boost exports from MSMEs
Govt sets up Inter-ministerial Committee for promoting exports of Micro, Small and Medium Enterprises (MSME) sector.
Why need for the Inter-Ministrial Committee?
- Revival of exports which were affected by global economic slowdown ( exports decline to USD 300 billion as against projected USD 360 billion)
- Overcoming the widening trade deficit gap as it resulted into increase in current account deficit (CAD crossed 6.7% of GDP in Q3 of fiscal year 2012-13).
- Suggest Long and short term measures to enhance exports.
Committee Members:
Chairman: R S Gujral (Finance Secretary)
Other Members-
- S R Rao (Commerce Secretary)
- Sumit Bose (Revenue Secretary)
- Madhav Lal (MSME Secretary)
- Rajiv Takru (Financial Services Secretary )
- Raghuram Rajan (Chief Economic Adviser)
Classification of MSMEs:-
MSME sector are classified into 2 classes with the following criteria:
1. Manufacturing or production enterprises
| Enterprises | Investment in plant & machinery |
| Micro Enterprises | < Rs.25 lacs |
| Small Enterprises | > Rs.25 lacs and < Rs.5 crores |
| Medium Enterprises | > Rs.5 crores and < Rs.10 crores |
2. Service enterprises
| Enterprises | Investment in equipments |
| Micro Enterprises | < Rs.10 lacs |
| Small Enterprises | > Rs.10 lacs and < Rs.2 Crores |
| Medium Enterprises | > Rs.2 Crores and < Rs.5 Crores |
Contribution of MSME sector to Indian Economy
- Around 40% of total exports.
- Over 8% to gross domestic product (GDP).
- Contributes around 45% of India’s manufacturing output.
- Provides employment to about 60 million persons through 26 million enterprises.
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Month: Current Affairs - April, 2013