Draft policy on “Udyog Sahayak Enterprises Network”

The Federation of Indian Chambers of Commerce and Industry (FICCI), Tata Institute of Social Sciences (TISS) and Azim Premji University have put forward the Udyog Sahayak Enterprises Network (USENET) framework draft policy.

USENET Framework draft policy

• The Udyog Sahayak Enterprises Network (USENET) framework approach has been set on the basis of the belief that India should focus on helping the existing MSEs to grow rather than creating more nano-entrepreneurs.
• This framkework has been created with the aim of providing a growth-driven services to over 62 million nano and micro-enterprises. Such nano and micro-enterprises currently employ over 100 million people in India.
• The draft framework further aims to create a countrywide entrepreneurial network.

Purpose of the framework

The framework has been prepared with the purpose of providing information on policies, government schemes, credit options and visibility to lenders and customers to the nano and micro-enterprises who are facing growth challenges. It will also create a support system that will help the enterprises to adopt new technologies and increase the productivity.

Significance of the framework

The draft policy will provide a major stimulus to the nano and micro-enterprises that are facing the challenge of growth in informal sector of the economy. The framework could help in creating an additional 10.3 million jobs in the five years by enabling the scale-up of nano and micro enterprises. Thus, the framework has the potential to grow and create a large number of jobs. Further, it could boost the value-added per worker potential. This in turn could bring in a 12% nominal growth in gross asset value (GVA).

Gross Asset Value (GAV)

It is the sum of value of property that a company owns. It is a common key performance indicator for property funds that measures the success of the fund manager.

Month: Current Affairs - January, 2021