MSMEs crucial for providing large scale employments at lower cost: Economic Survey 2017-18

New Delhi, Jan 29 (KNN) MSMEs in India play a crucial role in providing large scale employment opportunities at comparatively lower capital cost than large industries and also in industrialization of rural & backward areas, said the Economic Survey 2017-18.

The Economic Survey 2017-18 was tabled in the Parliament by Finance Minister arun Jaitley.

It said the Government has initiated a number of schemes for the sector and particularly the Pradhan Mantri Mudra Yojana for development and refinancing activities relating to micro industrial units in 2016-17.

The survey mentioned that to address some of the constraints faced by apparel firms, the Cabinet announced a Rs.6000 crore package for the apparel sector on June 2016.

It was found that since its implementation in June 2016, the package had a positive impact on the exports of Ready Made Garments (RMG) of Man-made fibres while it did not have a statistically significant impact on the RMG of other natural fibres, except wool.

"The impact of the package increased over time and did not show any signs of attenuation. The Government has in December 2017 approved the scheme for Capacity Building in Textile Sector (SCBTS) with an outlay of Rs 1,300 crore for the period 2017-2018 to 2019-2020," said the Survey.\

With regards to the Leather sector, which is highly labour intensive sector, the survey said that the sector
faces challenges which have been addressed through a scheme for the purpose of promotion of employment in the leather & footwear sector in December 2017, with an outlay of Rs 2600 crore over three financial years 2017-18 to 2019-2020.

For the Gems and Jewellery, the survey highlighted that India is one of the largest exporters of gems and jewellery.

Exports of the sector have risen from 0.7 per cent in 2014-15 to 12.8 per cent in 2016-17. Training in jewellery designing, setting up refineries, hallmarking centres etc. and creation of multiple jewellery parks would help the sector, said the survey. (KNN Bureau)