Medium, Small and Micro Enterprises (MSMEs) are a major engine of growth and employment in the country.
1. Energizing Small Businesses for New India
• Rs 3794 crore to MSME Sector for giving credit support, capital and interest subsidy and innovations
• Target to lend Rs 3 lakh crores under MUDRA Yojana in 2018-19. NBFCs - very powerful vehicle for delivering loans under MUDRA.
• Allocated Rs 200 crores to support small and cottage industries manufacturing perfumes, essential oils and other associated products (because our ecology supports cultivation of highly specialized medicinal and aromatic plants)
2. Tax deductions
• Corporate tax rate reduced to 25% for companies which reported a turnover up to 250 crores in the FY 2016-17.
• Reduction will benefit macro, small and medium enterprises which account for 99% of companies filing their tax returns.
3. Defence Production Policy 2018 to promote MSMEs
• An industry friendly Defence Production Policy 2018 proposed to promote domestic production by public sector, private sector and MSMEs
4. Skill development and employment opportunities
• National Apprenticeship Scheme with stipend support to give training to 50 lakh youth by 2020
• Introducing system of fixed term employment for apparel and footwear sector
• Setting up of model aspirational skill centres in every district of the country under Pradhan Mantri Kaushal Kendra.
• Proposed outlay of Rs 7148 crore for the textile sector in 2018-19 to boost employment
• Government will contribute 12% of the wages as EPF in all sectors for the next 3 years.