Government and big private firms did not pay Rs 6 lakh crore to MSME sector, Nitin Gadkari said – will find a solution in three months

• Gadkari rejects allegations of budget cuts in MSME sector
• The Prime Minister has targeted to reach the Indian economy by 5 Trillion dollars by 2024

Micro, Small and Medium Enterprises (MSME) Minister Nitin Gadkari on Thursday expressed grave concern over non-payment of nearly Rs 6 lakh crore to micro and small enterprises on behalf of the government and large private companies. He said that the Center is working to find a solution to this serious problem. Gadkari hoped that the problem would be resolved in the next three months. During this time, he was also asked to set a new definition for the MSME sector and the cooperative sector and non-government banking companies have been asked to provide loan facility to the units of this sector. MSME Minister Nitin Gadkari said in the Rajya Sabha that Prime Minister Narendra Modi has set a target to reach the Indian economy by 5 thousand billion dollars by 2024 and MSMEs will contribute significantly in achieving this goal. Gadkari dismissed the opposition’s allegations of budget cuts in the MSME sector.

22 thousand people got loan from banks
He said that banks have been asked to fix the minimum loan target in terms of lending to the MSME sector. He said that so far 22 thousand people have been given loans from banks after the latest efforts of the government. Gadkari said that in order to get more credit to the MSME sector, now cooperative sector banks and non-banking financial companies (NBFC) have also been approved to give loans to this sector. He admitted that due to global reasons, lack of capital, GST and demonetization, some problems were created for the region for some time as naturally occurring after the introduction of new system. Gadkari said that in Khadi Industry sector, the government is emphasizing on branding. He said that the government believes that the help of private agencies should be taken for marketing in this area and ‘corporate culture’ should be brought into it.

No cuts in budget of MSME sector

Budget released to MSME sector
2015-16 – Rs 2,620 crore
2018-19 – Rs 6,552 crore
2019-20 – Rs 7,011 crore

Subsidy given to MSME sector

2015-16 – 1,020 crores
2018-19 – 2070 crores
2019-20 – Rs 1,661 crore

Government Set Up Units

2015-16 – 44,367
2018-19 – 73,427
2019-20 – 55,737

Jobs created from MSME sector

2015-16 – 303362
2018-19 – 587467
2019-20 – 445896

Loans issued by banks to MSME sector

2015-16 – 20 thousand crores
2018-19 – Rs 3,168 crores
2019-20 – 3456 crores