PM Modi introduces CBFTE Prog for first-time exporters and RAMP Prog for MSMEs
30 June, 2022 | Riya Girdhar
"MSMEs contribute almost one-third of India's GDP. MSMEs contribute 30% of India's total income, or Rs. 100. Everyone benefits from the MSME sector's growth, according to PM Modi.
Three months after receiving approval from the Cabinet led by Prime Minister Narendra Modi, the World Bank-funded central government programme Raising and Accelerating MSME Performance (RAMP) for MSMEs was officially inaugurated on Thursday. Despite being announced by the government and the World Bank back in 2020, the five-year RAMP scheme will start in the current fiscal year 2022–2023 to support Covid–hit MSMEs in their business recovery.
Speaking at the “Udyami Bharat” programme in New Delhi, PM Modi said, “Over Rs 1,400 crore has been released under Rs 50,000 crore Self-Reliant India Fund for MSMEs, and 18,000 MSMEs have been digitally transferred over Rs 500 crore.” MSMEs are important to the development of the nation. MSMEs provide almost one-third of India’s GDP. MSMEs contribute 30% of India’s total income, or Rs. 100. Everyone benefits from the MSME sector’s strengthening.
Nirmala Sitharaman, the finance minister, stated in her budget speech in February that the scheme would be implemented over the next five years. In June of last year, the World Bank authorised Rs 3750 crore of the total programme budget. The government would pay the remaining expenditure of Rs 2312.45 crore.
The World Bank stated that RAMP aims to improve the performance of 5.55 lakh MSMEs in a statement from June 2021. According to a statement made by the Cabinet in March of this year, an apex National MSME Council led by the Minister for MSME would be responsible for monitoring RAMP and overseeing its policy implementation.
To support the ministry’s ongoing MSME programmes, the financial assistance will be allocated to the MSME Ministry’s budget based on “Disbursement Linked Indicators” (DLIs). Implementing the National MSME Reform Agenda, advancing center-state collaboration in the MSME sector, bolstering the receivable finance market for MSMEs, boosting the efficacy of the CGTMSE programme, and lowering the incidence of late payments are only a few of the DLIs.
The “Capacity Building of First-Time MSME Exporters” (CBFTE) programme was also introduced by PM Modi to improve the calibre of MSME goods and services to be competitive on the worldwide market. The action aims to assist MSMEs in realising their export potential and enhancing their engagement in the global value chain.
“This step has been taken to simplify the export procedure for first-time exporters, whether it be in terms of monetary help, certification-related support, etc. No matter how big your product is, I want as many MSMEs as possible to consider the global market. Trade, technology, and tourism would be used to evaluate the work that our embassies abroad have done, according to PM Modi.