Finance Minister Nirmala Sitharaman today presented the first Budget 2019 in the second term of the Prime Minister Shri Narendra Modi in the form of Bahi khaata (accounts ledger). Among the key announcements, FM said that the government’s focus is on MSME sector (Micro, Small, and Medium Enterprises). She announced that a payment platform will set up for the MSMEs.
The announcement comes in the backdrop of the government’s plan where they wish to start an e-commerce platform, similar to Alibaba and Amazon. The platform will aid in selling products from MSMEs and the Khadi and Village Industries Commission.
Nitin Gadkari, MSME Minister, had also informed the Lok Sabha on Thursday that the Ministry is in the process to initiate an online platform to popularize and give market access to the products produced by MSMEs.
Significantly, the MSME sector is a considerable contributor to India’s manufacturing sector. It plays a key role in generating jobs as well. The gift for MSMEs comes at the time when the central ministries are working on how to create more job opportunities. Also, the PM administration has set up two separate cabinet committees to focus on two critical issues, boosting investments and creating new jobs.
There are approximately 63.38 million unincorporated MSMEs in India that are engaged in different economic activities, including 23 million in trade activities and 19.66 million in manufacturing, as per the data from the MSME ministry. Notably, the MSME sector employs roughly more than 49.77 million people.
FM Nirmala Sitharaman also said while presenting budget 2019 that Make in India had promoted business. They will provide a pension to 3 crore traders and shopkeepers. Additionally, they will also help small business owners to get access to formal credit in 59 minutes.