Prime Minister Narendra Modi launched the Centre’s Support and Outreach Initiative for Micro, Small and Medium Enterprises (MSMEs) at the Vigyan Bhawan in New Delhi on Friday. Under the support programme, small and medium businesses will be given 59-minute loan facility upto Rs 1 crore.

Besides the national capital, similar launch programmes are being held at as many as 100 locations across the country, where Union Ministers and Ministers from the respective state governments will be present.

To enhance the credit access of small industries, the government has put forward 12 new policies. An increase from 3 to 5 percent in the interest subvention on pre and post shipment credit has also been announced.

“India has become an economic powerhouse due to the MSME sector,” said Modi stating that these policies are Diwali gift for the sector.

“12 major decisions taken by Central govt for MSMEs Sector are proof that when after breaking Silos, collective initiatives are taken, collective responsibilities are fulfilled, & collective decisions are taken, it creates a comprehensive impact,” said PM Modi.

The 100 days outreach programme is set to run through 100 districts in the country.

Growth in the MSME sector has been contributed by the inability to access timely and adequate finance.

The MSME sector also accounts for about 45 per cent of manufacturing output and around 40 per cent to total exports. About 97 per cent of the sector operate in the informal sector.

Applauding India’s jump of 23 ranks in “Ease of Doing Business” ranking this time, PM Modi said, “Four years ago, we were at 142th position. Today we are at 77th rank & I believe that “top 50″ isn’t too far from our reach.”

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