Mumbai, Aug 29 (KNN) There is a lot of scope for diversification in the Micro Small and Medium Enterprises (MSME) sector, said Nitin Gadkari, Union Minister for MSME.

He made the above remarks while addressing the MSME challenges and recommendations while delivering keynote address ‘Roadmap for Growth of MSMEs’ at the event organized by IMC Chamber of Commerce and Industry in Mumbai.

He stated, “Honey production, bamboo, bio-fuel production, fisheries, dairy, Agarbatti making, hydroponics, water transport like Ro-Ro, Ro-Pax, e-transport, mechanized fishing trawlers etc. can be new areas for such ventures.”

Gadkari highlighted that the MSME sector has a huge potential for generating income and employment, eradication of poverty, boosting export and contributing to economic growth.

The present Government under the leadership of Prime Minister Narendra Modi is looking at this sector as a major growth engine and source of generating employment, he added.

He further told that currently MSME contributes 29 % to the country’s GDP and the government intends to take this to 50 % in the next 5 years.

“The sector gives employment to about 11 Crore people currently, we will take this to 15 crore in the next 5 years. The government aims to generate 50 lakh jobs through Khadi. Added, that focus will be on 115 aspirational districts”, said Gadkari.

To achieve this, he stated “We need to create new channels for funding, make the sector investor friendly, bring in technological innovations, and reduce logistics cost to make our products competitive, provide adequate skilling and market support.”

While highlighting importance of technology and innovation, he emphasized upon reduction of cost for logistics where he sighted example of use of waterways and promoting electric and bio fuels instead of diesel vehicles to bring down logistics costs. Further, told that Government is also looking at import substitution.

He also called upon stakeholders to suggest ways and means to cut down red-tapeism and also told that the Ministry is working to build Bank of Ideas and Innovations wherein all stakeholders should contribute.

In addition, he stated that the Government is developing an e-market portal like Alibaba, which will be called as Bharat Craft. This will provide a direct interface between buyers and sellers. In the next 2-3 years this portal will bring a turnover of about Rs 10 lakh crore to the MSME sector.