Daijiworld Media Network – New Delhi
New Delhi, Mar 4: Prime Minister Narendra Modi reaffirmed the pivotal role of Micro, Small, and Medium Enterprises (MSMEs) in India’s industrial and manufacturing growth, emphasizing the government's commitment to strengthening this sector for inclusive economic development.
Addressing a series of post-Budget webinars via video conferencing, Modi discussed key themes, including MSMEs as engines of growth, manufacturing, exports, nuclear energy missions, and regulatory reforms. He highlighted the government’s proactive approach, often exceeding expert expectations in implementing policies aimed at bolstering the economy.
The Prime Minister noted a historic decision taken in 2020 to redefine MSMEs after 14 years, eliminating concerns that growth might disqualify them from government benefits. This policy shift has contributed to a significant rise in the number of MSMEs, now exceeding six crore, thereby generating employment opportunities for millions.
In the latest Budget, further enhancements have been introduced to ensure continuous support for MSMEs. Modi acknowledged the sector’s biggest challenge—access to finance—and highlighted key measures addressing this issue. Loan availability has surged from Rs 12 lakh crore a decade ago to Rs 30 lakh crore today. To further empower MSMEs, the government has doubled the loan guarantee cover to Rs 20 crore and introduced customized credit cards with a limit of Rs 5 lakh to meet working capital needs.
Underlining India’s commitment to consistent policies, the Prime Minister emphasized that the past ten years have seen robust financial discipline, transparency, and sustained reforms. This stability has instilled confidence in the industry, assuring stakeholders in manufacturing and exports that this momentum will continue.
Encouraging businesses to seize new opportunities, Modi noted that many countries are eager to strengthen economic ties with India. He urged manufacturers to leverage this growing global interest and enhance India’s footprint in international markets.
Reiterating the importance of a favorable business environment, Modi recalled the introduction of the Jan Vishwas Act, which streamlined regulations and eliminated over 40,000 compliance requirements at both central and state levels. The government remains committed to this initiative, as seen in the ongoing work on the Jan Vishwas 2.0 Bill and simplified tax structures.
Acknowledging global political uncertainties, Modi asserted that India remains a center of growth, having demonstrated resilience during crises such as the COVID-19 pandemic. He pointed out that supply chain disruptions highlight the need for reliable partners, and India is well-positioned to fill this role.
He encouraged Indian enterprises to proactively integrate into the global supply chain, leveraging policy support and favorable conditions. “With strong resolve and strategic planning, every industry can contribute significantly to India’s growth,” he said.
Highlighting the success of the Production-Linked Incentive (PLI) scheme, Modi noted its impact across 14 sectors, leading to the approval of over 750 units, investments exceeding Rs 1.5 lakh crore, production worth over Rs 13 lakh crore, and exports surpassing Rs 5 lakh crore. These figures demonstrate the potential for further expansion and innovation when given the right opportunities.
To further accelerate growth, the Prime Minister announced two new missions aimed at boosting manufacturing and exports. These initiatives will focus on technological advancements, improved product quality, cost efficiency, and skill development. He urged stakeholders to identify high-demand global products that India can manufacture and strategically target international markets.
Recognizing the critical role of research and development in India’s manufacturing evolution, Modi stressed the need for further innovation. He encouraged entrepreneurs to develop new products and enhance existing ones through R&D-driven advancements.
Additionally, he highlighted the vital role of state governments in attracting investment. “The more states prioritize ease of doing business, the greater the influx of investors,” he stated, reinforcing the need for continued policy reforms at the state level.
With a strong policy framework, financial backing, and global opportunities, India’s MSME sector is poised to be a driving force in the nation’s economic ascent.