States likely to be ranked on basis of their efforts to promote MSMEs

The government is working to rank the states on basis of their efforts to promote micro, small and medium enterprises.

   
MSME state ranking

As per reports, the government is working to rank the states on basis of their efforts to promote micro, small and medium enterprises (MSMEs). At the national MSME awards ceremony, MSME Secretary AK Panda quoted, “we are making a state ranking system where we will rank States, we are in talks with Niti Aayog for this.”

The MSME secretary further said, “we will rank states on the basis of 4 E’s. Employment generation, for enterprise creation, third, exports, and fourth for ease of doing business.” He also added that the MSMEs are increasingly registering themselves on the Goods and Services Tax network (GSTN), which is bringing them into the formal sector. In fact, MSMEs account for the maximum number of registered entities on GSTN.

The MSME secretary also said at the event that while MSMEs contribute about 45% to the country’s exports, there are only 33,000 registered MSME exporters, and that many such enterprises route their products through larger export houses. He also stated at the event that the ministry is developing a platform for providing a consolidated database of export-related information for MSMEs.

“We are also developing a global market intelligence system. All export related info will be put in one place, in very simple, intelligible language,” Panda said. The information will be available in 22 languages, he said.

The secretary also highlighted the fact that the growth of MSMEs is crucial to the $5 trillion-economy goal of the Indian government. The ministry has also set itself a target of increasing MSMEs contribution to India’s GDP to 50 per cent, from 29 per cent at present.

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