Government sets up Inter-ministerial Committee to boost exports from MSMEs

Govt sets up Inter-ministerial Committee for promoting exports of Micro, Small and Medium Enterprises (MSME) sector.
Why need for the Inter-Ministrial Committee?

• Revival of exports which were affected by global economic slowdown ( exports decline to USD 300 billion as against projected USD 360 billion)
• Overcoming the widening trade deficit gap as it resulted into increase in current account deficit (CAD crossed 6.7% of GDP in Q3 of fiscal year 2012-13).
• Suggest Long and short term measures to enhance exports.

Committee Members:
Chairman: R S Gujral (Finance Secretary)
Other Members-

• S R Rao (Commerce Secretary)
• Sumit Bose (Revenue Secretary)
• Madhav Lal (MSME Secretary)
• Rajiv Takru (Financial Services Secretary )
• Raghuram Rajan (Chief Economic Adviser)

Classification of MSMEs:-
MSME sector are classified into 2 classes with the following criteria:
1. Manufacturing or production enterprises

2. Service enterprises

Contribution of MSME sector to Indian Economy

• Around 40% of total exports.
• Over 8% to gross domestic product (GDP).
• Contributes around 45% of India’s manufacturing output.
• Provides employment to about 60 million persons through 26 million enterprises.

Month: Current Affairs - April, 2013