Economy showing signs of recovery, govt ready to extend any help: Sitharaman
Union finance minister launches Ubharte Sitaare Fund in Lucknow, says Uttar Pradesh with largest number of MSMEs will benefit
Union finance minister Nirmala Sitharaman on Saturday said she would not indulge in any number game about the GDP (Gross Domestic Product) growth but the economy had shown signs of recovery and would recover.
Launching the Ubharte Sitaare Fund in Lucknow, Sitharaman also said it would help Uttar Pradesh which has the largest number of MSMEs (micro, small and medium enterprises) Sitharaman and the state government’s One District One Product (ODOP) initiative will unlock their true potential for both domestic and export markets. The fund has a corpus of ₹500 crore.
She also said the Central government was ready to extend any help that the economy may need on the path to recovery.
“At this time, I am not engaging in any number game. We hope the economy recovers and any more help the economy might need, we are willing to give,” Sitharaman said while speaking to media persons after the launch. The fund will be anchored jointly by India Exim Bank and SIDBI to support the small and mid-sized industry facing constraints in realising their export ambitions.
“The economy has to be helped to come out and we see signs of recovery in the economy,” said the finance minister.
Sitharaman, who had announced the Ubharte Sitaare programme in her Union budget speech for 2020-2021, said, “SIDBI and India Exim Bank have come together to handhold the MSMEs industry and launched Ubharte Sitaare.”
She also said the scheme would help India’s export champions in borrowing and getting technology and address other such problems. Some developed countries like Germany had already tried such a scheme by identifying and supporting the champion sector and providing them necessary technology, she added.
Listing measures taken by the Union government to help the MSMEs, she said the definition of the MSMEs had been changed to their advantage and credit flows had been ensured for them.
Sitharaman referred to her discussion with UP minister for MSME Sidharth Nath Singh about the One District One Product (ODOP) scheme. She said UP would get the benefits of the Ubharte Sitaare Fund as the identification of the champions had been already completed.
The chambers of commerce and industry should be asked to conduct awareness programmes at the district level to ensure the benefits of the Ubharte Sitaare scheme reached the industry. She said the state’s MSME department in coordination with the India Exim Bank and SIDBI should spread awareness about the Ubharte Sitaare programme.
Speaking to media persons, she listed the central government’s measures for economic recovery.
“The Union government has given five mini budgets and the budget of 2021-22 to help the economy. We have made announcements after the second wave too.”
She said additional funds had been given to health infrastructure too and the Centre had made a second set of announcements.
As regards the fuel price, she said the Centre levied taxes at a fixed rate while the states imposed value added tax (VAT), she added.
“Whenever there is an increase in the prices, the VAT will also increase. I have said before and I repeat, it’s a question of Centre and states how best the concerns of fuel buying public can be addressed,” she said.
About the support to workers who may have lost jobs amid the pandemic, she said a scheme was launched in the formal sector for those getting salary up to ₹15000 per month. She said the scheme was to end in June 2021 and had been extended till 2022.
The central government decided to implement 16 schemes to provide jobs to migrant workers in a time bound manner if there were more than 25,000 migrant workers in any district, she said.
The Union finance minister also said the Mahatma Gandhi Rural Employment Guarantee Scheme had a budgetary estimate of ₹60,000 crore earlier and the same had been increased to ₹1 lakh crore or more in view of the Covid-19 pandemic. Construction workers were also given financial assistance through the DBT (direct benefit transfer) and ration was being provided free of cost at PDS shops.
Speaking at the event, the MSMEs minister of UP Sidharth Nath Singh said the Yogi Adityanath government has taken several policy measures to boost MSMEs.
As a result, in the last four-and-a-half years, the state has disbursed over ₹2.5 lakh crore loans to small entrepreneurs and generated 26 million additional employments.
Meanwhile, SIDBI’s chairman and managing director Sivasubramanian Ramann highlighted several initiatives that have been taken in the recent past for the benefit of MSMEs in India, more so in the state of Uttar Pradesh. He reiterated that the SIDBI is committed to facilitate the all-round growth of MSMEs in the country through credit-plus approach.
