The NEWLY APPOINTED Union MSME Minister
Shri Narayan Rane, a BJP politician, was sworn in as the new Union Minister of Micro Small and Medium Enterprises. The 69-year-old Rane is serving his first term as a Rajya Sabha member. The former Maharashtra chief minister was formerly a six-time MLA and a member of the Maharashtra Legislative Council. He was in charge of important ministries such as Industries, Revenue, Ports, and Animal Husbandry as a state Cabinet Minister.
For over 35 years, Narayan Rane has served the public in various roles as an elected official. From 1971 through 1984, he worked for the Income Tax Department, and from February 1999 to October 1999, Rane was the Chief Minister of Maharashtra.
What does MSME Sector expect from the newly appointed Minister Narayan Tatu Rane?
During his term, outgoing minister Nitin Jairam Gadkari became well-known for supporting local manufacturing and providing a voice to initiatives such as “Make in India,” “Vocal for Local,” and others. The assistance that Gadkari gave to the Khadi and Village Industries Commission was equally notable. Following Gadkari’s and Pratap Chandra Sarangi’s departures, MSMEStory examines the sector’s future prospects.
Because of the circumstances and problems that the MSME sector is facing, Narayan Rane’s appointment to the cabinet is extremely significant. Micro, small, and medium enterprises (MSME) account for roughly 30% of India’s GDP and are one of the most important sources of employment, second only to agriculture. Experts have stated time to time again that in order to boost the economy, this sector’s growth must be accelerated.
What are the demands of the MSME sector?
Since the beginning of 2020, the MSME sector has been subjected to the whims of time. However, in January 2021, the industry was ecstatic because it believed it had defeated the first wave of coronavirus. Businesses were rebounding, and some were even close to resuming pre-pandemic sales and income levels. Meanwhile, when the second wave hit in March & April, MSME sector was once again trapped in a gale of costs, limitations, and lockdowns.
Despite the government’s numerous stimulus programs, the industry is failing to fulfill its working capital requirements. The industry is pleading with the government to guarantee that MSMEs receive their payments on schedule so that their day-to-day operations may continue to function smoothly.
The union MSME minister Narayan Tatu Rane should encourage public sector undertakings (PSUs) and major businesses to prioritize SMEs. ” This would assist them in alleviating their financial load. The government should reconsider the filing deadlines for GST because most payments from PSUs and other major businesses take at least 90 days.
Other problems that MSMEs confront include high increases in raw material prices, business instability, sales declines, and more. According to a study conducted by a credit rating firm, 72 percent of MSME respondents believe the limitations will result in labor shortages.
The union MSME minister and the administration must continue to promote local industry and take efforts to integrate India into the global economy. The MSME sector accounts for around 48% of exports, a key source of revenue for the country, and may help the economy recover while also boosting the sector. The government should promote ‘Buy from India’ alongside Make in India.
The path to recovery for Indian SMEs is long and winding, but all eyes are now on the new MSME minister Narayan Tatu Rane.
What Narayan Rane said about MSME Sector?
Upon sworning as the new Union MSME minister, Rane stated that the ministry will seek to increase job creation and promote GDP development.
Union MSME Minister Shri Narayan Rane in a written reply in the Rajya Sabha said that all new and existing Micro and Small Enterprises dealing in manufacturing, production, and services, including trades, are eligible to be listed under Credit Guarantee Scheme (CGS) implemented by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
The Union MSME Minister Narayan Rane’s job would be to speed up the recovery of the MSME sector, which has been hit hard by the Covid issue and alleviate the fears of small businesses, who have been clamoring for greater help, notably in terms of loan availability and decreased compliance costs.
Under the government’s Atmanirbhar Bharat initiative, constant efforts are being made to uplift MSMEs through various schemes for infrastructure development, credit & financial assistance, technology up-gradation, and skill development, as well as measures such as an expansion of the MSME definition to encompass a broader range of business units and exporters, and so on.
Last year, former Union MSME Minister Nitin Gadkari set a goal of creating 5 crores of new employment in the MSME sector over the next five years and raising the MSME sector’s GDP contribution to 50% from about 30% and exports’ participation to 60% from 49% and the newly appointed Union MSME Minister is expected to work in the same direction.