Micro Small and Medium Enterprises (MSME) Minister Kalraj Mishra Friday said the Bharatiya Janata Party-led government is committed to the growth of the sector and invited support and suggestions from the states and the union territories in policy-making.
He said this during an interactive daylong conference with the state ministers and secretaries.
Mishra asked the states to set up a mechanism for new entrepreneurs. He added that of the states provide Rs.100 crore for this, a collateral free loan of Rs.1000 crore can be made available through all banks.
The ministry informed under the Credit Guarantee Fund Scheme every year, collateral free loan of Rs.20,000 crore is provided to about 14,000 entrepreneurs. Kerala and Chhattisgarh have taken a lead in this aspect.
Emphasising the importance of the sector Mishra said the sector contributes 8 percent of the country's GDP, 45 percent of the manufactured output and 40 per cent of its exports. The MSMEs provide employment to about 60 million persons through 26 million enterprises. The employment potential is much higher than that in large industries.
Talking about infrastructure asset, the minister said: "As per the information compiled, more than 40,000 industrial plots are lying vacant in the country. Also, more than 20,000 plots are lying vacant in the SEZs. We can succeed in setting up millions of new enterprises on these vacant plots by formulating appropriate policy."
Mishra also said the process of simplification of forms and online registration will prove to be an important step for setting up new enterprises in the country.
