PM Modi launches schemes for MSMEs at ‘Udyami Bharat’ programme

• Prime Minister Narendra Modi launched several key initiatives for micro, small and medium enterprises (MSMEs) at the ‘Udyami Bharat’ programme.

• ‘Udyami Bharat’ is reflective of the continuous commitment of the government to work towards empowerment of MSMEs.

• The Prime Minister emphasised that it is important for India’s MSME sector to be strong for increasing exports and for the country’s products to reach new markets.

• Modi launched key initiatives like ‘Raising and Accelerating MSME Performance’ (RAMP) scheme, ‘Capacity Building of First-Time MSME Exporters’ (CBFTE) scheme and new features of the ‘Prime Minister’s Employment Generation Programme’ (PMEGP) to ramp up the MSME sector.

• He also digitally transferred assistance to beneficiaries of PMEGP for 2022-23, announced results of the MSME Idea Hackathon 2022, distributed National MSME Awards, 2022, and issued Digital Equity Certificates to 75 MSMEs in the Self Reliant India (SRI) Fund.

• MSME Idea Hackathon 2022 was aimed at promoting and supporting the untapped creativity of individuals, promoting the adoption of the latest technologies and innovation among MSMEs. The selected ideas will be provided funding support of up to Rs 15 lakh.

• National MSME Awards 2022 is a recognition of the contributions of MSMEs, states/UTs, aspirational districts and banks for their outstanding performance in the growth and development of India’s dynamic MSME sector.

A brief look at the new schemes

Raising and Accelerating MSME Performance (RAMP) scheme

The ‘Raising and Accelerating MSME Performance’ (RAMP) scheme with an outlay of around Rs 6,000 crore, aims to scale up the implementation capacity and coverage of MSMEs in the states, with impact enhancement of existing MSME schemes.

It will complement the Aatmanirbhar Bharat Abhiyan by fostering innovation, encouraging ideation, incubating new business and entrepreneurship by developing quality standards, improving practices and processes, enhancing market access, deploying technological tools and Industry 4.0 to make MSMEs competitive and self-reliant.

Capacity Building of First-Time MSME Exporters scheme

‘Capacity Building of First-Time MSME Exporters’ scheme aims to encourage MSMEs to offer products and services of international standards for the global market. This will enhance the participation of Indian MSMEs in the global value chain and help them realise their export potential.

New features of PMEGP

• New features of the ‘Prime Minister’s Employment Generation Programme’ (PMEGP) include an increase in the maximum project cost to Rs 50 lakh (from Rs 25 lakh) for the manufacturing sector and Rs 20 lakh (from Rs 10 lakh) in the service sector and inclusion of applicants from Aspirational districts & Transgenders in the Special Category applicants for availing higher subsidies. 

• PMEGP is a major credit-linked subsidy programme aimed at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector by helping traditional artisans and unemployed youth.

• PMEGP was launched in 2008 by merging two schemes — Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) — for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas. 

• PMEGP is being implemented by Khadi and Village Industries Commission (KVIC), State Khadi and Village Industries Board (KVIB) and District Industries centres (DIC).

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