In a bid to promote micro, small and medium enterprises (MSMEs), the government of India will be ranking states on the basis of 4 E’s: employment generation, enterprise creation, ease of doing business and exports. A state ranking system will be implemented where states will be ranked on the basis of their efforts to MSMEs.
At the National MSME Awards Ceremony, the secretary of MSME, A.K Panda said that they are in talks with NITI AAYOG to implement the program. The introduction of Goods and Services Tax Network (GSTN) is enabling MSMEs to enter the formal sector of the economy. Right now, MSMEs account for the maximum number of registered entities on GSTN.
Panda further added that MSMEs contribute around 45% to the country’s exports, but there are only 33000 registered MSME exporters, and many such MSMEs route their exports through larger export houses. The ministry is developing a global market intelligence system where all export related information will be put in one place, and will be available in 22 languages.
MSMEs play a crucial role in the Indian government’s goal of becoming a $5 trillion economy by 2024 and the ministry has set a target of increasing their contribution to country’s GDP from 29% to 50%.