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Context: The first meeting of the National MSME Council was held on 10th May 2023 at Vigyan Bhawan, New Delhi. The meeting was organised by the Ministry of Micro, Small and Medium Entreprises to discuss the issues and challenges faced by the MSME sector in the country.

Details

• The meeting was attended by representatives from various ministries, departments, state governments, industry associations, banks and financial institutions.
• The meeting aimed to review the progress of various schemes and initiatives for the MSME sector and to identify the gaps and bottlenecks in their implementation.
• The meeting also deliberated on ways to enhance the competitiveness and resilience of the MSME sector in the wake of the global pandemic and the changing market dynamics.
• The event was held under the umbrella of the Central Sector Scheme "Raising and Accelerating MSME Performance".

Raising and Accelerating MSME Performance (RAMP)

About

• The RAMP program is a strategic initiative launched by the Prime Minister in June 2022 to support the growth and development of micro, small and medium enterprises (MSMEs) in the country.
• The program aims to enhance the competitiveness and resilience of MSMEs by providing them with better access to markets and financing, as well as improving their business skills and innovation capabilities.

Main components of the RAMP program

• Market Access: This component facilitates the integration of MSMEs into domestic and global value chains, by providing them with market intelligence, e-commerce platforms, trade facilitation services, and quality standards certification.
• Financing Access: This component improves the availability and affordability of credit for MSMEs, by expanding the coverage and outreach of financial institutions, offering credit guarantees and subsidies, and promoting alternative financing models such as crowdfunding and peer-to-peer lending.
• Skill Development: This component enhances the human capital and productivity of MSMEs, by offering them training and mentoring programs, digital literacy courses, and online learning resources.
• Innovation Support: This component fosters the innovation and technological upgrading of MSMEs, by providing them with access to research and development facilities, incubation and acceleration programs, and intellectual property rights protection.

Significance

Increased market access and visibility

• By using the digital platform, MSMEs can reach out to more customers and suppliers across the country and abroad.
• They can also access new opportunities and tenders from government agencies and large corporates.
• They can also showcase their products and services to potential buyers and investors through online exhibitions and fairs.

Improved access to finance

• By availing of the credit guarantee fund, MSMEs can get easy and affordable loans without any collateral or third-party guarantee.
• They can also save on interest costs by getting a subsidy for the first three years.
• They can also access other financial services such as insurance, factoring, leasing, etc. through the digital platform.

Enhanced productivity and quality

• By participating in the cluster development program, MSMEs can benefit from improved infrastructure and facilities such as common testing labs, design centres, tool rooms, etc.
• They can also adopt best practices and standards from other MSMEs in their cluster or sector.
• They can also access new technologies and innovations through the digital platform.

Strengthened Skills and Capabilities

• By joining the capacity-building program, MSMEs can upgrade their knowledge and skills in various aspects of their business.
• They can also learn from experts and mentors from various fields and sectors. They can also get certified and recognized for their achievements.

Conclusion

• The RAMP program is expected to benefit over 10 million MSMEs across various sectors and regions, creating more jobs, income, and exports for the economy. The program is also aligned with the government's vision of making India a self-reliant and globally competitive nation in the post-pandemic era.

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MSME Sector: https://www.iasgyan.in/daily-current-affairs/msme-sector-14

PRACTICE QUESTION Q. Micro, small and medium enterprises (MSMEs) play a vital role in the economic development of India. They contribute to job creation, innovation, and social inclusion. However, MSMEs also face many challenges, such as a lack of access to finance, markets, technology, and skills. How can MSMEs overcome these challenges and achieve sustainable growth?

https://www.pib.gov.in/PressReleasePage.aspx?PRID=1923218