New Delhi, Dec 13 (KNN)  The Ministry of Micro, Small and Medium Enterprises (MSME) has organised a meeting with MSME units and industry associations to discuss issues and proposals of MSME sector relating to the Budget 2015-16.

The meeting chaired by Secretary, Ministry of MSME, Madhav Lal was held on December-8 here, according to the Ministry’s social networking site.

During the meeting, MSME Associations presented their views on issues related to direct tax and indirect tax and other general budget proposals.

Secretary (MSME) assured the MSME Associations that their suggestions would be duly considered and accordingly be taken up with the Ministry of Finance, Government of India.

In India, MSMEs contribute significantly to employment generation and development in rural areas. The sector is one of the key drivers for Indian transition from an agrarian economy to an industrialised economy, according to an inter-ministerial committee report.

Further, the sector contributes to about 45 per cent of the manufacturing output, 43 per cent of the total exports of the country and 8.72 per cent of its GDP.

Yet, they are plagued with problems such as technological obsolescence, supply chain inefficiencies, fund shortages, sub-optimal scale of operation, increasing domestic and global competition, change in manufacturing strategies and a turbulent and uncertain market scenario.  (KNN/ES)