States must act proactively towards formalization of MSMEs: Prime Minister Mr. Narendra Modi

While addressing the State Chief Secretaries in New Delhi, Prime Minister Mr. Narendra Modi called for the formalization of the micro, small and medium enterprises (MSMEs) to help them scale further. He added that finance, technology, market and access should also be made available for skilling to the MSMEs to become globally competitive.

He emphasizes the importance of bringing more MSMEs onto the public procurement portal, Government e-Marketplace (GeM), and that several steps should be taken to make MSMEs a part of the global value chain. The Prime Minister said that the linkage of MSME clusters and self-help groups can be explored for promoting local products and getting geographical indication (GI) tags registration for them which will give a fillip to the vocal for local initiative. He also asked the states to identify their best local products and help them attain national and international significance.

Strengthening the MSME sector of India is important to boost economic growth and become Aatmanirbhar, he said and also asked the Chief Secretaries to focus on finishing the compliances and laws which are outdated.

The Government of India is also planning to launch an Udyam-like registration portal for MSMEs called Udyam Assist Platform (UAP), in order to ease the business regulations and encourage units in the informal sector to get into the formal fold. UAP is a formalization project of the MSME ministry and Small Industries Development Bank of India (SIDBI), to bring the Informal Micro Enterprises (IMEs) into the formal ambit. The certificate issued on the UAP would be treated at par with Udyam Registration Certificate for IMEs for availing of the benefits of priority sector lending. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.