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.
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.