Enhanced turnover and Investments for medium enterprises will bolster the manufacturing growth, increase its share in GDP: PHD Chamber

No.PR-108 June 1, 2020 New Delhi Enhanced turnover and Investments for medium enterprises will bolster the manufacturing growth, increase its share in GDP: PHD Chamber While appreciating the amendment in the definition of MSMEs, Dr D K Aggarwal, President, PHD Chamber of Commerce and Industry, said in a press statement issued here today that the new definition of MSMEs with Rs 250 crore annual turnover and Rs 50 crore investments in plant and machinery for medium enterprises will bolster the manufacturing sector, increase its contribution in GDP and create millions of new employment opportunities for the growing young workforce in India. Revised and broadened definition will enhance the production possibility frontiers of the MSMEs, increase their competitiveness and create a level playing field for them to tap new opportunities in the domestic and international markets, said Dr. Aggarwal This is a historic day for the MSMEs as this breakthrough will go a long way to strengthen our goal of self-reliance (Atmanirbhar Bharat) and a sustainable economic growth trajectory of the country, going forward, said Dr D K Aggarwal. We urge the government that provision of Emergency Credit Line to Businesses/MSMEs, as part of stimulus package announced by Hon’ble Finance Minister, of Rs 3 lakh crores collateral-free automatic loans for MSME units with turnover of up to Rs 100 crore should also be extended now to the MSME units with turnover of up to Rs 250 crore, said Dr D K Aggarwal. This will help larger number of impacted businesses to meet their additional funding requirements for undertaking businesses activities, said Dr D K Aggarwal. The MSMEs are very crucial for the economy to rejuvenate from the daunting impact of pandemic COVID-19; the recent reforms in MSMEs will help to meet the overall national objectives of generating employment, reducing poverty and addressing rural-urban migration, he said The revised definition will help in directing the benefits of economic growth to the intended beneficiaries, said Dr D K Aggarwal. MSMEs are the pillars of economic growth as they contribute around 32% in gross value added; employs around 111 million people (36.1 million in manufacturing, 38.7 million in trade and 36.2 million in other services) with a contribution of more than 48% in total exports of India, said Dr. Aggarwal The increased limits for medium enterprises will help larger number of such enterprises to avail the benefits of various Government Schemes and ensure that MSMEs are able to resume, restart and revive from the current distressed times along with enhanced ease of doing business. Enhanced contribution of MSMEs in manufacturing and thereby in overall economic growth will help India to become a fastest growing emerging economy once again, said Dr D K Aggarwal. Ends. Media Division PHD Chamber of Commerce and Industry