Ministry of micro, small and medium enterprises calls for Rs 2,500 crore technology upgradation fund

The ministry of micro, small and medium enterprises (MSMEs) has asked the Planning Commission for a Rs 2,500 crore technology upgradation fund scheme.

Ministry of MSME Initiatives

Secretary at the ministry of MSMEs U.K. Varma said last week that upgraded technology coupled with adequate and timely credit was necessary for the sector’s growth. He was addressing a national summit titled ‘Cluster Development in MSMEs – Fuel for Inclusive Growth’ organised by ASSOCHAM.

Besides, robust infrastructure, innovation and marketing initiatives, and skill development programmes are required for the growth of MSMEs in an economy set to grow in double digits, said Mr Varma.

There is immense scope and potential for technology-oriented MSME clusters across the country, he said adding that an investment of Rs one crore in a micro enterprise generates 36 jobs. For inclusive growth, said Mr Varma, encouraging such activities is imperative.

msme inclusive growth sme

In India, MSMEs account for 45 per cent of manufacturing output in value terms and 40 per cent of total exports. The sector employs 50 million people in 26 million units that produce over 6,000 products.

Mr P.K. Jain, chairperson of ASSOCHAM’s national council for SMEs, said there is genuine need to bring technology to MSMEs. Following e-cluster model is necessary to beat challenges of globalisation and faster penetration of innovative ideas for inclusive market growth.

Abhay N

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Abhay is the founder and managing editor of India Microfinance. He is passionate about microfinance, financial inclusion and social entrepreneurship in India.

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1 Comment

1 Comment

  1. Dr.Mrs Sushma Joiya

    September 9, 2011 at 3:32 pm

    This is Dr.Mrs Sushma Joiya, National Chairperson, Integrated Congress of Women Entrepreneurs, working all over India to uplift the rural ladies through entrepreneurship.Many a times it is felt that the Block level officers are not willing to cooperate with the process of linking the Self Help Groups with industrial activities.
    We intend to work with a moto to provide at least Rs.2000 per month to the active worker members of SHGs and for this we require a Federation of SHGs to combine and take part in production activities.
    It is requested that Ministry of MSME under TRED related programs take initiatives to help the NGOs in proformimng the required services to uplift the rural ladies through entrepreneurship.
    Dr.Mrs Sushma Joiya

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