India’s prime minister launched Tuesday a Rs 6,025 crore scheme to encourage exports and announced the launch of a new Scheduled Cooperative Bank under his leadership. Indian exporters need policy clarity and confidence that the government will support them in their efforts despite tough market conditions. The Export Promotion Scheme for Enterprises is an incentive scheme that provides a concessional loan facility of up to Rs 8 crore for exporters with export orders worth more than Rs 4 crore per year.
India’s prime minister launched the Scheme to support SMEs and MSMEs. Under this scheme, more than Rs 6,000 crore will be provided as concessional finance to micro, small and medium enterprises (MSMEs) to enable them to increase their exports. Initiatives taken by the government in the MSME sector include the establishment of MSME Clusters at various places in India. The clusters have helped establish linkages between MSMEs and large manufacturers to enable the latter to access the global market.
The prime minister’s new organization, the Scheduled Cooperative Bank, is expected to bring financial inclusion to remote areas of India. To encourage the cooperative banking sector, capital support to cooperative banks will be increased from Rs 6500 crore to Rs 18000 crore. So far, the government has issued licenses for more than 3000 Scheduled Banks with a network of more than 1.3 lakh branches, compared to the 95000 branches of commercial banks spread all over the country.
India’s prime minister launched a new scheme to boost exports which could be worth more than Rs 6,000 crore. The Export Promotion Scheme for Enterprises (ESPE) is a concessional loan facility that will provide a finance facility of up to Rs 8 crore ($1.24 million) to exporters with export orders worth more than Rs 4 crore ($6.65 million).
India’s prime minister launched on Tuesday the first of a series of bank accounts, under his leadership, for the unbanked rural communities. He also inaugurated a new scheme to boost exports which could be worth more than Rs 6,000 crore. The Export Promotion Scheme for Enterprises (ESPE) is a concessional loan facility that will provide a finance facility of up to Rs 8 crore ($1.24 million) to exporters with export orders worth more than Rs 4 crore ($6.65 million).
To encourage exports, the government is implementing a series of schemes. While the government seeks to boost exports, it also wants to consolidate rural areas into bank accounts. The Rural Bank Account Scheme (RBAS) will help those living in about 700,000 villages in the country who could not open bank accounts due to a lack of identity proof and inadequate finances.
In the financial year 2018-19, the Government has earmarked Rs. 20,000 crore for recapitalization of Public Sector Banks (PSBs). The allocation for this purpose has been increased from the earlier budgeted amount of Rs. 10,000 crore. This amount would be provided in tranches as may be required by them. The government has also taken several steps to boost the public debt market and to enable banks to raise long-term resources at cheaper rates and raise resources throughout the year.
The Government has decided to extend the procurement contract for Rafale fighter aircraft from 36 aircraft to 41 aircraft. The financial implication of this decision is estimated at Rs 25,000 crore per annum. The government has granted a Rs 1,04,000-crore grant for the development of 177 industrial corridors ICDs across the country. This will be done with funds already allocated in the 2018-19 budget and by paring down certain unspent balances from the 2016-17 budget.
The government has doubled the allocation of funds for the Swachh Bharat Mata Vrat Swachh Suraksha Yojana (Clean India Mother’s Fasting and Save the Nation) from Rs 500 crore to Rs 1000 crore. The government has proposed to allocate an amount of Rs. 1,48,075 crore for the Ministries of Rural Development and Drinking Water & Sanitation in Union Budget 2018-19, as against a budget estimate of Rs.87,047 crore.
The government is looking to set up a new economic advisory body, which will be akin to the Niti Aayog. The country will witness two key events at the end of July this year. One is when the government is to complete three years in office in New Delhi, and the other is when Prime Minister Narendra Modi will host a big public event in Gujarat.
What is the Raising and Accelerating MSME Performance scheme?
The government has launched a new scheme, “Raising and Accelerating MSME Performance” (RAMP), to strengthen the base of the manufacturing sector. The scheme aims at improving the business environment for the manufacturers and promoting their growth. Presently, the manufacturing sector in the country is facing some challenges like non-availability of credit, low-value addition by manufacturers, and other production-related issues.
The Ministry of Micro, Small, and Medium Enterprises (MSME) launched a new initiative – “Unified MSME Portal for State and District Level Reporting” (Unified MSME Portal) in March 2017. The unified MSME portal is a one-stop solution for MSMEs to comply with various statutory obligations to promote ease of doing business.
The objective of the Unified MSME Portal is to create single-point access IT platform for all the MSMEs, especially at the level of District and State Governments to link their various systems and operationalize it in a time-bound manner. A New Scheme, “Raising and Accelerating MSME Performance” (RAMSP), has been launched by the Ministry of Micro, Small, and Medium Enterprises (MSME).
Does the government have any new schemes for the textile sector?
The Ministry of MSME has introduced a new scheme titled “Assistance to Micro Units for Development and Expansion of Exports” (AMDE&E) for enhancing businesses of micro, small and medium enterprises (MSMEs) in the Textiles Sector. Under this scheme, it is proposed to provide up to Rs.10 crore as Export Credit Assistance (ECA) from the EXIM Bank.
The Ministry of MSME launched a new scheme for developing high-growth entrepreneurs in the food sector. Under this scheme, the government has allocated Rs. one lakh to each beneficiary. The Modi government has put in place several initiatives to ensure that MSMEs get faster benefits of Goods and Services Tax (GST).
The government has launched a new scheme named “EXIM Bank for Export Credit” (EXC) to provide support to the exporters. Under the scheme, banks will provide financial aid to exporters. The amount of credit will be up to 90% of export orders, in value terms. To encourage exports, the government has also waived off export duty on machinery and equipment and natural gas.
The Ministry of MSME has launched a new scheme named “Direct Benefit Transfer in MSME Sector” (DBT-MSME) in the financial year 2017-18. Under this scheme, the beneficiary’s monthly wages and allowance will be directly transferred to his bank account. The amount of subsidy is stated in the order issued by the Government. If schemes are approved by this government, then the amount of subsidy may be more than that stated in the government order.
Agriculture and farmers’ welfare schemes
The government has decided to set up a committee to recommend an interest subvention scheme for farmers. It is expected that this will improve the income level of farmers. The issue of the agriculture sector and its progress was discussed during the Cabinet meeting in March 2017. The government plans to take various measures to boost the agriculture sector and increase farmers’ income levels in the country.
The government has proposed to increase the MSP (minimum support price) of Kharif crops by one and half times, as compared to the cost of production. Similarly, it has planned to buy 8.33 crore quintals of pulses under the minimum support price. The government has also proposed that farmers shall be provided interest at 9% on working capital loans availed from Primary Agriculture Credit Societies (PACS) and Primary Agriculture Cooperative Societies (PACS).
Technology and innovation
India has achieved a new record for the highest number of patents issued in the world. The government has allocated Rs. 1,300 crore for the promotion of innovation and technology in the country. The Minister for IT, Electronics & Information Technology Ravi Shankar Prasad announced that the Government of India is developing a blockchain platform to ensure digital payment and delivery of services at the speed of governance. In Budget 2018-19, it has allocated Rs. 1,500 crore for promoting the Indian industry in Artificial Intelligence (AI).
Indian airports sector has seen a growth of 17.53% in passenger movement during the fiscal 2018 and India’s domestic air traffic increased to 6.74 lakhs against 6.44 lakhs in FY’17, said the top official of the Airports Authority of India (AAI) Ravindra Singh on 1 March 2018. Indian airports sector has sa a growth of 17.53% in passenger movement during the fiscal 2018 and India’s domestic air traffic increased to 6.74 lakhs against 6.
The Ministry of MSME has introduced a new scheme titled “Assistance to Micro Units for Development and Expansion of Exports” (AMDE & E) for enhancing businesses of micro, small and medium enterprises (MSMEs) in the Textiles Sector. Under this scheme, it is proposed to provide up to Rs.10 crore as Export Credit Assistance (ECA) from the EXIM Bank.
Pradhan Mantri Mudra Yojana (PMMY, PMUY) is a scheme introduced in 2015 by the Government of India which provides funding assistance to Non-Corporate Small Business Units through the Micro Units Development and Refinance Agency (MUDRA) Bank. It is India’s biggest loan scheme. The scheme provides loans to non-corporate, non-farm small/micro enterprises engaged in the manufacturing or services sector.
The government has announced that it plans to set up a new scheme named “Revitalising Infrastructure and Systems in Education (RISE)”. It will focus on strengthening the entire education chain, starting from schools, particularly government schools. This scheme will be implemented in partnership with the State Governments and various stakeholders.
MSME has launched a new scheme for Technical Skill Development of Micro and Small Enterprises. The objective of this scheme is to provide training for skill development of Micro, Small, and Medium Enterprises sector workers through continuous learning. This scheme will be implemented by the Ministry of MSME in partnership with National Industrial Training Organisation (NITO) in all the states.
The following initiatives were taken by the Modi government:
The government has placed a lot of emphasis on Swachh Bharat Abhiyaan (Clean India Mission), launched in 2014, to fulfill Mahatma Gandhi’s dream of a Clean India. This is a national campaign to clean up the streets, roads, and infrastructure of India’s cities, smaller towns, and rural areas.
The government has also planned to build more than 20 lakh toilets in rural India. The objective of the Swachh Bharat Abhiyaan is to provide access to safe affordable sanitation facilities, especially in rural areas. This scheme has been implemented by the Ministry of Drinking Water and Sanitation.
Budget 2018 has allocated additional funding of INR 100,000 crore for the development of the National Highway Infrastructure. The government plans to build 33000 kilometers of new roads and widen existing highways. It is estimated that the job will be created in India by 2019-20.
The government has ensured greater transparency and accountability by placing more focus on good governance and the effective implementation of schemes. The government has introduced the Pradhan Mantri website, which contains all the information about Government programs, schemes, and notifications. It is accessible to citizens from within their mobile phones as well.
The government has focused on developing infrastructure, transport, and connectivity in the country, especially roads and railways. It focuses on improving the quality of Indian roads and expanding the highway network. This would not only help in reducing pollution but also reduce travel time. The government has allocated INR 500 crore for the development of the North East Road Network Connectivity Project. It is expected that this will improve connectivity between northeast India and other parts of the nation.
The Modi government has launched a campaign named “Beti Bachao, Beti Padhao” (save the girl child, teach the girl) to address issues of the declining child sex ratio in India. The objective of this scheme is to educate girls and save them from female infanticide, gender discrimination, and the prevention of crimes against women. It was launched by Prime Minister Narendra Modi on 22 January 2015.
The Modi government has launched the Clean Ganga mission aimed at cleaning the river Ganga to make it clean and safe for public use. The objective of this mission is to clean the River Ganga in four years by 2022. The government is also considering a proposal to set up a High Court in Nainital, Uttar Pradesh.
Economic reforms are undertaken by the Modi Government:
The Modi government has launched several sachets me itofurtcatalyzelyse economic growth. It has introduced the Stand-Up India Campaign, which supports start-ups with INR 3 crore funding for their business. In the 2017-18 Budget, there has been a significant hike in the provision allocated for Small Enterprises Scheme and MSMEs sector. It is also planning to set up a new National Manufacturing Authority (NMA) to increase manufacturing capacity and address the high import dependency of the Indian economy.
The government has also launched a nationwide campaign to provide toilets and sanitation facilities to all households. It is estimated that the goal of this scheme is to provide about 8.97 crore toilets for rural households and 4.67 crores for urban households in 11 years. The objective of the Clean India Mission is to house every household with a toilet by 2019.
The government has also launched a nationwide smart cities program.
The government has planned to introduce new technology in various sectors of the Indian economy. This includes next-generation infrastructure for public transportation in big cities, the launch of India’s first indigenous Aircraft carrier, and the development of space programs. It is also planning to set up new world-class institutions like the Atal Innovation Mission (AIM) and the National Institute of Design (NID).
Prime Minister Narendra Modi launched the Start-up India and Stand-Up India campaign in September 2015. In the 2017–18 Budget, there has been a significant hike in the provision allocated for Small Enterprises Scheme and MSMEs sector. To promote entrepreneurship, the government has also announced a scheme named ‘Make in India’ which will ensure that domestic manufacturing of goods is promoted in India. The objective of this scheme is to make Indian goods competitive on world markets and consequently create jobs for Indians.
To promote the use of toilets in rural India, the government has launched a scheme named ‘Bharat Nirmal Yojana’. It is aimed at providing financial assistance for constructing a toilet for people who do not have access to it. Budget 2018 has allocated additional funding of INR 100,000 crore for the development of the National Highway Infrastructure. It is estimated that the job will be created in India by 2019-20. The government plans to build 33000 kilometers of new roads and widen existing highways.
India has shown great performance after the Modi government came to power in May 2014. The current and future performance of India is dependent on the government in terms of welfare schemes, economic reforms, citizen policy, governance, and overall development.
The Modi Government has been working for the upliftment of the Indian economy by focusing on fast-tracking structural reforms and investments in infrastructure. It has ensured a better growth rate and consolidated its position as one of the fastest-growing economies in the world.
edited and proofread by nikita sharma