PM launches historic Support and Outreach Initiative for MSME sector

Published By : Admin | November 2, 2018 | 17:50 IST
QuotePM Modi launches the MSME ‘Support and Outreach Programme’ in Delhi
QuotePM Modi also announced twelve major decisions to accelerate growth in the MSMEs of India.
QuoteThese 12 decisions are ‘Diwali Gifts’ from the government to the MSMEs of India: PM Modi
QuotePM unveils 12 key initiatives
Quote59 minute loan portal to enable easy access to credit for MSMEs
QuoteMandatory 25 percent procurement from MSMEs by CPSEs
QuoteOrdinance for simplifying procedures for minor offences under Companies Act

The Prime Minister, Shri Narendra Modi, today launched a historic support and outreach programme for the Micro, Small and Medium Enterprises (MSME) sector. As part of this programme, the Prime Minister unveiled 12 key initiatives which will help the growth, expansion and facilitation of MSMEs across the country.

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The Prime Minister said that the 12 decisions that he is announcing today, will mark a new chapter for the MSME sector. Noting that MSMEs are one of the principal employment generators in India, the Prime Minister recalled the glorious Indian traditions of small scale industry, including Ludhiana’s hosiery, and Varanasi’s sarees.

The Prime Minister said that the success of economic reforms launched by the Union Government, can be gauged from the rise in India's “Ease of Doing Business Rankings,” from 142 to 77 in four years.

The Prime Minister said that there are five key aspects for facilitating the MSME sector. These include access to credit, access to market, technology upgradation, ease of doing business, and a sense of security for employees. He said that as a Diwali gift for the sector, the 12 announcements he is making, will address each of these five categories.

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Access to Credit

As the first announcement, the Prime Minister announced the launch of the 59 minute loan portal to enable easy access to credit for MSMEs. He said that loans upto Rs. 1 crore can be granted in-principle approval through this portal, in just 59 minutes. He said a link to this portal will be made available through the GST portal. The Prime Minister asserted that in New India, no one should be compelled to visit a bank branch repeatedly.

The Prime Minister mentioned the second announcement as a 2 percent interest subvention for all GST registered MSMEs, on fresh or incremental loans. For exporters who receive loans in the pre-shipment and post-shipment period, the Prime Minister announced an increase in interest rebate from 3 percent to 5 percent.

The third announcement made by the Prime Minister was that all companies with a turnover more than Rs. 500 crore, must now compulsorily be brought on the Trade Receivables e-Discounting System (TReDS). He said that joining this portal will enable entrepreneurs to access credit from banks, based on their upcoming receivables. This will resolve their problems of cash cycle.

Access to Markets

The Prime Minister said that on access to markets for entrepreneurs, the Union Government has taken a number of steps already. In this context, he made his fourth announcement, that public sector companies have now been asked to compulsorily procure 25 percent, instead of 20 percent of their total purchases, from MSMEs.

The Prime Minister said his fifth announcement is related to women entrepreneurs. He said that out of the 25 percent procurement mandated from MSMEs, 3 percent must now be reserved for women entrepreneurs.

The Prime Minister said that more than 1.5 lakh suppliers have now registered with GeM, out of which 40,000 are MSMEs. He said transactions worth more than Rs. 14,000 crore have been made so far through GeM. He said the sixth announcement is that all public sector undertakings of the Union Government must now compulsorily be a part of GeM. He said they should also get all their vendors registered on GeM.

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Technology Upgradation

Coming to technological upgradation, the Prime Minister said that tool rooms across the country are a vital part of product design. His seventh announcement was that 20 hubs will be formed across the country, and 100 spokes in the form of tool rooms will be established.

Ease of Doing Business

On Ease of Doing Business, the Prime Minister said his eighth announcement is related to pharma companies. He said clusters will be formed of pharma MSMEs. He said 70 percent cost of establishing these clusters will be borne by the Union Government.

The Prime Minister said that the ninth announcement is on simplification of government procedures. He said the ninth announcement is that the return under 8 labour laws and 10 Union regulations must now be filed only once a year.

The Prime Minister said that the tenth announcement is that now the establishments to be visited by an Inspector will be decided through a computerised random allotment.

The Prime Minister noted that as part of establishing a unit, an entrepreneur needs two clearances namely, environmental clearance and consent to establish. He said that the eleventh announcement is that under air pollution and water pollution laws, now both these have been merged as a single consent. He further said that the return will be accepted through self-certification.

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As the twelfth announcement, the Prime Minister mentioned that an Ordinance has been brought, under which, for minor violations under the Companies Act, the entrepreneur will no longer have to approach the Courts, but can correct them through simple procedures.

Social Security for MSME Sector Employees

The Prime Minister also spoke of social security for the MSME sector employees. He said that a mission will be launched to ensure that they have Jan Dhan Accounts, provident fund and insurance.

The Prime Minister said that these decisions would go a long way in strengthening the MSME sector in India. He said the implementation of this outreach programme will be intensively monitored over the next 100 days.

 

 

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Text of PM’s address at the 78th Session of the World Health Assembly
May 20, 2025
QuoteThe theme of the World Health Assembly this year is ‘One World for Health’, It resonates with India’s vision for global health: PM
QuoteThe future of a healthy world depends on inclusion, integrated vision and collaboration: PM
QuoteThe health of the world depends on how well we care for the most vulnerable: PM
QuoteThe Global South is particularly impacted by health challenges, India’s approach offers replicable, scalable and sustainable models: PM
QuoteIn June, the 11th International Day of Yoga is coming up, This year, the theme is ‘Yoga for One Earth, One Health’: PM
QuoteWhile building a healthy planet, let us ensure that no one is left behind: PM

Excellencies and Delegates,Namaste. Warm greetings to everyone at the 78th Session of the World Health Assembly.

Friends,

The theme of the World Health Assembly this year is ‘One World for Health’. It resonates with India’s vision for global health. When I addressed this gathering in 2023, I had spoken about ‘One Earth, One Health’. The future of a healthy world depends on inclusion, integrated vision and collaboration.

Friends,

Inclusion is at the core of India’s health reforms. We run Ayushman Bharat, the world’s largest health insurance scheme. It covers 580 million people and provides free treatment. This programme was recently extended to cover all Indians above the age of 70 years. We have a network of thousands of health and wellness centres. They screen and detect diseases such as cancer, diabetes and hypertension. Thousands of public pharmacies provide high-quality medicines at far less than the market price.

Friends,

Technology is an important catalyst to improve health outcomes. We have a digital platform to track vaccination of pregnant women and children. Millions of people have a unique digital health identity. It is helping us integrate benefits, insurance, records and information. With telemedicine, nobody is too far from a doctor. Our free telemedicine service has enabled over 340 million consultations.

Friends,

Due to our initiatives, there has been a heartening development. The Out-of-Pocket Expenditure as percentage of Total Health Expenditure has fallen significantly. At the same time, Government Health Expenditure has gone up considerably.

Friends,

The health of the world depends on how well we care for the most vulnerable. The Global South is particularly impacted by health challenges. India’s approach offers replicable, scalable and sustainable models. We would be happy to share our learnings and best practices with the world, especially the Global South.

Friends,

In June, the 11th International Day of Yoga is coming up. This year, the theme is ‘Yoga for One Earth, One Health’. Being from the nation which gave Yoga to the world, I invite all countries to participate.

Friends,

I congratulate the WHO and all member states on the successful negotiations of the INB treaty. It is a shared commitment to fight future pandemics with greater cooperation. While building a healthy planet, let us ensure that no one is left behind. Let me close with a timeless prayer from the Vedas. सर्वे भवन्तु सुखिनः सर्वे सन्तु निरामयाः। सर्वे भद्राणि पश्यन्तु मा कश्चिद् दुःखभाग्भवेत्॥ Thousands of years ago, our sages prayed that everyone should be healthy, happy and free from disease. May this vision unite the world.

Thank You!