Micro, small and medium enterprises (MSME) sector will soon become the largest employment provider in the country, said BB Swain, Secretary, Ministry of MSME on Tuesday

Speaking at an event organised by ASSOCHAM, Swain said, "We are relentlessly working towards ensuring a conducive environment for MSMEs."

The ministry of MSME and SIDBI has been working together to launch a formalisation project in January this year to address the challenge of formalisation of informal micro-enterprises. 

About 13 lack informal micro-enterprises have already been brought into the formal ambit through the project. The project also facilitates access to affordable credit and the benefits of priority sector lending, he said.

The number of registered MSMEs has now reached 1.64 crore generating 10.73 crore employment in the process. 

Swain also said that the government is looking beyond the formalisation of these micro units to make this sector the highest employment provider in the country. 

The figure of 10.73 crore employment generated is based on self-declaration by MSMEs and the sector is surely on its way to becoming the largest employment provider in the country. 

"Working closely with ministries, departments, state governments, industry bodies and other stakeholders to provide an enabling environment to the MSMEs such as access to credit, low cost of finance, equity infusion, technology upgradation, access to green technology, enhanced procurement, domestic and international market access among others," he mentioned.

The reduction of guarantee fees for MSMEs will be started from 1 April 2023, the secretary explained.

The reduction will likely be to the tune of 50 per cent below 1 crore. The new PM VIKAS program for artisans and craftsmen will strengthen the MSME sector in the country, he added.

“We are committed to working for the welfare of the MSME sector and we shall continue to do so,” he reiterated.