My eminent colleagues of the Cabinet Shri Arun Jaitley ji, Shri Giriraj Singh ji, Shri Shiv Pratap Shuklaji, Shri Pon Radhakrishnan ji, other supporters from the banking sector, financial institutions, the great business and industry leaders, important dignitaries joining today from all over the country, small scale entrepreneurs, ladies and gentlemen!

In this event dedicated to the small scale industries of the country, I extend my heartfelt welcome and compliments to all you entrepreneurs joining from all parts of the country.

First of all, accept my advance best wishes on Deepawali and Hindu New year (New Samvat). We all know how significant Deepawali and New Samvatis for all of us here. Now this fervour is also spread worldwide. Especially it holds a lot of importance for our brothers and sisters engaged in business who elebrate their new financial year today hope that Deepawali augurs well for good business round the year.

Apart from it, this time is also important because in the same period the agriculture crops and agri-products grown by our farmers reach the market. The transactions in this period also settle precedent for the upcoming year's market trends and the growth of the country.

That's why the Deepawali season is as significant for the country as the annual budget is. The decisions taken during this time have a big impact on our future.

Today, in this special event, I want to tell you in detail about the 12 big decisions taken by the government for the small industry sector. In the past few weeks several Ministries have relentlessly deliberated together to reach to these monumental decisions. Some of these have been implemented as a pilot project at a smaller scale to judge their feasibility. After rigorous assessments and reviews now it is an opportune time today when I can proudly share the 12 landmark decisions with the country.

Friends, these 12 decisions are also testimony of the fact that when Silos are broken and a Collective Initiative and Collective Responsibility isendorsed, when a Collective Decision is taken, then it has an ambient impact holistically.

In silos, unfortunately, all your dreams remain buried in the files. But when silos break, the officers themselves speed up the matter and make sure decisions are taken faster.

These 12 decisions have come as a great gift for Deepawali for the country's MSME i.e. Micro, Small and Medium Enterprises. It is the harbinger of a new era in small scale industries in our country. History shall unfold for this sector.

Brothers and Sisters, before presenting what the future shall be like, I would like to revisit with you some things of the past and the present as well.This is also important because we need to rejoice the glorius past, which will keep us confident in the present;and it is important to reinforce such things.

Friends, it is well known that MSME or small scale industries are the means of livelihood of millions of people in our country and they also play an important role in the economy. The MSME is the second largest employment generating sector after agriculture. The way farming is the backbone of India's economy, the MSMEs are strong steps, which accelerate the development of the nation.

Small scale industries have been contributing significantly in several sectors ranging from embroidery to weaving, from agri to sports industry, from clothing to weaponry, from wool to energy generation. Be it-

• Kanchipuramsaree or Panipat handloom
• Hosiery of Ludhiana or bronze articles of Muradabad
• Banaraseesaree from Banaras or locks of Aligarh
• The auto industry of Jamshedpur and Pune or  Chemical industry of Bharuch and electric pumps of Coimbatore
• Handicrafts and Stone craft from Jodhpur and Kishangarh, as well as silver jewellery of Cuttack
• Paintings of Madhubani or Sports Industry ofMeerut

From East to West or North to South, our Small scale industries are spread far and wide across the expanse of the country.

These do not just hold the industry status for us, but they are our heritage, our tradition, and are an important part of our lives. Several cities are identified on the map only because of the small scale industries running there.

I may not be wrong in saying that every district of our country holds a unique identity, and the onus of this lies on the small scale industry of that district.

Upholding the rich traditions and heritage, our small industries have indeed strengthened over time and thereby contributing significantly to the Economy of India.

Friends, today India is shining as a bright spot in the Global Economy space. All eyes across the world are set on India; a new India has become thecenter of all global business discussion; a new India which has the conviction and power to fulfill the hopes and aspirations of its 130 million citizens.

MSME sector, that is YOU alone,deserve the credit for bringing India to this place of pride by inducing new energy in the country. This is the result of your endeavors and hardwork due to which India has achieved the stature of an Economic Powerhouse today.

MSME sector has proven to be the biggest shareholder in the past four or four years in India. You have made great efforts towards formalization of the sector, have adapted digital transactions proactively, have aligned with new infrstructures like e-commerce, and have also adopted such a monumental tax reform of the country like GST. You are also competing with the global market with great wisdom and bravery.

Due to these developments in the country, today, India is heading towards leading the fourth industrial revolution. We are leapfrogging into a new orbit and are slated to enter into a new era. All this is happening because you, the country's MSME sector in already in sync with the developments and is keeping its infrastructure upgraded and aligned with the latest.

Friends, government is unitedly moving forward with you to encourage you in all future endeavors.

Due to several recent reforms and decisions implemented in the country, India has improved the infrastructure required to simplify the process of doing business here. Escalation in the World Bank's Ease of Doing Business Rankings released just two days ago stands a testimony to this. What was unimaginable four years ago, India has achieved it for the world to see.

Friends, it is a matter of pride for all of us that India has moved meteorically in the Ease of Doing Business Rankings. Just four years ago, before we formed this government, we were at 142nd position. Today, I am happy that we have moved 77 ranks and reached 65th position. I believe,withthe initiatives taken bythe State Governments and Central Government in all departments, I am confident that achieving a berth amongtop 50 would not be a far cry.

With the increased simplicity and convenience due to enhanced Ease of Doing Business, theMSME sector stands to gain a lot. Getting clearance for a construction permit or electricity supply has always been a big challenge for our small scale industries.By working at the grassroot level and modifying the rules, we have now achieved the exemplary job of making business convenient for MSME industry.

Apart from this, in the past for about four or four and a half years’ special focus has been on developing the MSME sector. Several comprehensive changes in policies and decisionshave further strengthened this sector.

Friends,

In order to strengthen the sector, according to me a special focus has to be on the following five categories:

A- You get capital easily, get loans at cheaper rate and ascertain cash flow

B- You get a market as well as an increased share on E-commerce platforms

C-Technology Upgradation is accessible

D-Ease of Doing Business is enhanced and government interference is minimised

and

E-Employees are guaranteed a sense of security

I would now elaborate on each category one after the other.

Let me first talk about category A–ie., you get capital easily, get loans at cheaper rate and ascertain cash flow and that too without several visits to the banks.

This is your first requirement for any business. I am aware that many people start their own business by investing their own capital too. But in order to expand the business, one still has to resort to loans. This support is provided by our banks.

However, what is its ground reality? Small entrepreneurs, whose annual turnover is between 20 lakh and five crores rupees, they have difficulty in getting loans. Due to their smaller size of the balance sheet, they are often delayed in getting loans, and therefore they do not qualify for an adequate amount of loan. Above all, they face further crisis in getting their dues cleared from the major companies or large industries where their goods are supplied as there is delay in clearing the bills. The entire business suffers as this adversely affects the cash flow cycle.

To resolve this critical problem of yours, I am happy to make this first announcement today- and that is dedicating a 59-minute loan portal which is being launched today nationwide. That is, as much time you take to reach your office from home in the morning, or as much time you invest in bookkeeping of your Ledger account in the evening, you will be able to get intransigent approval of a loan of up to one crore rupees.

Friends, some time ago an attempt was made under the leadership of Mr ArunJaitley. At that time, I told the officials that though you are launching it as a trial, but will it reach the conclusion we are aspiring?

Friends, this year it is 72 years since we achieved our independence. I asked them that on the day when the portal will be implemented throughout the country, will they be able to approve the loans of 72 thousand small entrepreneurs.

Friends, at this moment, when I am talking to you, look what this counter is showing! What appears as the clock, is telling us how many MSME entrepreneurs have so far borrowed through this portal, got loans approved or renewed. You can constantly see how this number is changing.

Sitting in some farway corner of the country, far from here, your entrepreneur contemporary has just got a loan of one crore rupees sanctioned in just 59 minutes. Yes indeed, within just 59 minutes. Just 59 minutes! And, I intentionally kepta cap of 59 minutes or else it would not take long to extend from one hour to two.

Friends, this could have been accomplished by previous governments too. But then such important initiatives require honest intentand credible reputation. Our government, on the basis of Minimum Government Maximum Governance mantra, is striving to provide you hassle free accessibility to resources at every step.

I remember, when I was talking about this portal with the officers, I said that the information of the turnover of entrepreneurs is available in their GST Return, income is reported through their Tax Return, Cash Flow is also available via the bank account, then banks should simply adopt Analytics to assess the loan request and grant the loan.

I had also said that this facility should be promoted in a robust manner, and it should be linked to all such platforms like GST Portal which are accessed by MSME fraternity.

Why should an honest taxpayer or an honest businessman who joins this portal face any problem of getting a loan sanctioned? So when you file your return on the GST portal, you will also get this facility. As soon as you go to the portal, you will be asked if you want a loan? If you approve inYES, you will get access to the facility of a 59 minute loan portal.

Friends, our efforts are that government faciltities should reach the doorstep of every MSME entrepreneur and businessmenpaying GST. Today, I am glad that keeping all these things in mind, now I am finally dedicating this GST PORTAL to you to facilitate loan acceptance in just 59 minutes. The benefit of this has begun to reach the small entrepreneurs of every sector of the country today.

It is a new India.No more traumas of several bank visits now.

Friends, now I come to today's second announcement.

While you do get intransigent approval of loan in 59 minutes, but it is also important that at what rate of interest you are getting.

Now listen carefully to what I am going to say!

Friends,now it has been decided that every GST registered MSME will be given a rebate of two percent interest on new loan or incremental loan for a loan amount of upto Rupees One crore.

This is the scope of your integrity and honesty. As an extension of the same, joining GST and paying tax will not only make you secure, but will entitle you to a discount of 2 percent interest on your loan.

Not only this. There is aDeepawali Gift ready for exporters too. The government has also decided to increase the rate of interest from present 3 percent to 5 percenton the loan accrued by exporters in between the pre-shipment and post-shipment period.

Dear Friends, MSMEs have a huge contribution in the country's exports. You handle about 40 percent of the country's total exports. For you to also reap the benefit of India's enhancedglobal credentials, it has been decided to give this discount in the rate of interest to all MSME exporters.

I am hopeful this move will increase the stakes of MSME Exporters.

So far all announcements that have been made will make it easier for you to get loans on reduced interests without making innumerable visits to the banks.

But I also want that the exigencies that force you to take a loan should further be reduced.

I know that the approval of bills are kept pending for long durations by large companies to which MSMEs supply goods.it is too late to get the bill approved. Many times you have to wait for months for your own money. In this case, you have to take a loan to manage your business.

My third announcementof today is related to this. It is now mandatory that all such companies with a turnover of above 500 croresshall now have to register on Trade Receivables e-Discounting System (TReDS) platform so that MSMEs do not face problems in cash flow.

Many of you may know that TReDS is a platform which is a community of few MSME's, government PSUs, some banks as well as those companies to which these SMEs supply their goods.

Now the government is aiming to expand the scope of TReDS. All PSUs of the government have been instructed to join theTReDS platform and encourage industries related to them to also be brought onto TReDS.

Now I would like to tell you about the benefits TReDS platform will offer for thecompanieswith a turnover of 500 crores+.

Suppose a big company has purchased goods worth 10 lakh rupees from a small scale entrepreneur. The entrepreneur has already received a confirmed receipt of supply of order and he has also fulfilled the order. But for some reason when a big company does not pay him for his supplies in due time the small businessman is unfortunately trapped. Afterall, for him, Rs 10 lakh is a big deal.

In such a scenario, the small trader receives help from the TReDS platform. He is required to simply upload a confirmation receipt or bill received from that large company on this platform. On the basis of this bill, he can make a valid claim that within a month or two he is awaitingthe due payment from that big company. Since the bill is issued by a big company, banks are liable to give credence to it and on the basis of this the SME businessman is qualified to receive an appropriateamont of financial support. In future when he receives his payment, it is credited to the bank and hence he can run his business uninterrupted.

Friends, the biggest benefit of this is that there will never be a shortfall in the money which is to be rotated or invested in your business, and thus your cash flow cycle shall remained maintained.

However, on this occasionwith this announcement, I will also request the big companies that the bills associated with small scale industries should be accepted early and their payments should not be delayed.

Friends,

However, if the payment still gets delayed, we have prepared another option to ease you. Our Small Scale Enterprises can register their grievances on the MSME Ministry's portal, which will be resolved within a given timeframe with government’s intervention. This will certainly motivate big companies to settle your payments within a stipulated time.

Friends,
It is our government's top priority that loans are made easily available at low interest rates, MSME exporters get the benefit of discounts on interest rate, and cashflow cycle is maintained for all businessmen. My first three announcements have been in this direction.

Now I come to the category "B", and this  isfor you,creation of new market for the country's MSME sector. On this front, the government has taken several important steps, and I am going to proudly announce some important decisions today.

 

Friends, in the last year, about 1,14,000crore rupees worth of supplies were bought by government companies from different sources. It was mandatory till date for all government companies that 20 percent of such purchasesmust have been made MSME sector i.e. micro and small scale industries.

My fourth announcement of today is related to this. The government has decided to increase this compulsory requirement of 20 percent to 25 percent. That is, now due to the 5 percent increase in the purchases made by government enterprises, the share of Micro and Small Enterprises is slated to increase.

Taking this further another important and the fifth announcement is related to women entrepreneurs. Further to the clause of 25% purchase mandatory from MSME sector, it has also been decided that 3% of the total purchase from it would be reserved from women entrepreneurs. That is, now it has become necessary for the government companies to buy at least 3% of their purchases from women entrepreneurs.

In my opinion today's decision will strengthen women entrepreneurship in the country.

The government has developed another platform to provide market for partners, MSME, GeM i.e. Government E-marketplace. When it started two-and-a-half years ago, a big motive behind it was to bring transparency in procuring government goods.

The MSME sector is also getting the direct benefit of this transparency. Because of GeM, it has been easy for small entrepreneurs to reach out to Government buyers. I still remember the lady of Tamil Nadu, who had sold a small thermos to the Prime Minister's Office and was paid on time. As such, several micro and small enterprises have been given new opportunities due to this portal. It has given new inspiration to their lives. Otherwise, no small scale businessman could have ever imagined that he would stand in good stead in front of large-scale supply companies and would be able to sell his products to the government. But because of GeM portal all this is now possible.

Friends, so far, over 1.5 lakh suppliers have been added to the GeM portal, which has 40 thousand MSMEs. Under this, 9 lakh orders have been given so far and transaction of around 14 thousand crores of rupees have already been made.

Just imagine how many entrepreneurs have reaped the benefit of this portal without sharing their earnings with or paying commission with any middlemen.

Friends, to strengthen the system of GeM, today the Central Government has made an important decision. This is my sixth announcement today, your sixth Deepawali gift.

Friends, now all Central Government companies have been mandated to subscribe to GeM. Not only this, they will also register all their MSMEs vendors on this platform, which will give them maximum benefit upon purchases made from MSMEs. Subscribing to GeM shall open up endless possibilities. And with today's announcement it is certainly going to get more consolidated with enhanced scope.

Friends, in today’s era of computerization and technology, e-commerce and online marketing, it is imperative for more small scale industry to join the portal to seek optimal benefit for their businesses.

Similar to GeM, to be able to sell goods on other e-commerce platform SMEs would require a quality certification. The government is working with various Certification Agencies to ensure such certificationprosess is available closer to your clusters andfactory.

We are also developing this model of Aggregator to connect small industries with private sector companies.

Frends, I will now address the category "C". Apart from the Capital and Market, a major challenge that SMEs face is of Technological Upgradation. Many of our small industries do not have timely support so as to get the benefits of modern technology.

The toolrooms set up in the country today are currently extending support to you in designing and improving product design. In these tool rooms, you can also create high technology products, for which machines are not available with you.

For the past four years the government has also emphasized on improving the conditions of these toolrooms. While the previous government facilitated the trainings of approximately three and a half million people in these toolrooms, our government managed the training of more than six and half million people.

Today's seventh announcement that I am about to make is linked to this crucial topic of Technological upgradation.

Friends, the government has decided that this system of toolroom should be expanded further across the country. To achieve this, 20 hubs will be built across the country and 100 spokes such as Toolrooms will be installed. Today I announce a package of six thousand crores for this important work.

This will provide MSMEs wider platform to develop better designs, enhance quality, and avail training and consultancysupportwhichwill prove to be highly beneficial.

After apprising you about the efforts being made to support you in Technological Upgradation, friends, I will now discusscategory "D" and that is - Ease of Doing Business.

Many of you entrepreneurs work in the Pharma sector. You manufacture and also export medicines. Several of our small scale companies are producing life saving essential drugs, which are verypotent. These small companies have immense talent and skill, but unfortunately they have to sell their medicines through the brand of large companies.

My eighth announcementtoday is linked to these pharma companies. Pharma companies belonging to MSME sector have the ability to do business, and hence for them to have a direct reach to the customers we have decided to make a dedicated cluster. I also declare that 70% expenditure on these clusters shall be borne by the Central Government. This landmark decision of our government announced today will also prove to be crucial for increasing production in the Pharma sector.

Freinds, you might have realised that since the beginning of my speech I have been reiterating terms like technology, GST, online portal, Formalization, TReDS, GeM Portal and many such terms. In fact, these are the mechanisms that are going to emancipate you from the conundrum of the procedures.

GST has formalized and organized the economy. This has made it easy to connect business with new technology like Big Data Analytics. From this analysis of data, there will be more improvements in the Ease of Doing Business, and it will help in bringing such facilities to your doorsteps.

I am of the strong opinion that this is going to be the foundation of a new Business Environment for new India and it will certainly encourage honesty.

Friends, in view of making government procedures foolproof and convenient for MSMEs, I am going to make a ninth announcement today. An epochal decision has been taken so that youhave to fill lesser forms and returns.Returns liable under eightlabor laws and 10 central rules will now have to filed only once in a year instead of twice as in earlier years.

The government is constantly working to reduce human intervention and reinstate transparency in the system.Arunjihas also referred this with respect to Income tax. This sets the context of my 10th declaration today.

To get rid of unnecessary scrutiny, the government has decided that the roster aboutallocation of factory visit will be decided only by a Computerized Random Allotment. It will record not only the details and status of his visit to a factory, but also the details of his week later review visit. He will have to put it on his report portal in 48 hours. This ensures that now he can not go anywhere with his own will and register falls claims of fake visits.

This decision will prove very important in getting rid of the Inspector Rule prevalent in small scale industries. Now no inspector will barge into your company on his own will. You have the right to question his credibiltiy and question his purpose of visit.

Friends, the government trusts you, it trusts all the citizens of our country. In the last four years, our government has abandoned the Affidavits at many places, and also done away with interviewing in many categories of government jobs, and has permitted self certification.

Now today I am going to announce a major reform related to environmental laws for small scale industries. That is, this is your 11th Deepawali gift and my 11th announcement.The announcement is also directly related to mutual trust between you and the government. This is the 11th declaration:simplification of the process of environmental clearance and promotingself certification.

Friends, you all know that to set up an enterprise till now, it is necessary to cross the two stages of Environmental Clearance and Consent to Establish. The government has decided that by consolidating both these for MSMEs under air pollution and water pollution laws, only one Consent will be mandatory now.

The government will accept your returns on self-certification on trust. Similar to labour Department, routine Inspection of the Environment will also be done away with. Now onwards only 10 percent of MSMEs will be inspected.

It has also been decided by the Government to increase the number of enterprises in the Green and White category. You would recall my words said from Red Fort “zero defect zero effect”. Regardless of whether I talk about the tool room or talk about self-certification we will ensure that no one in the world market can point out any defect in our manufacturing. We will be manufacturing our products with such scientific technology and strategy they will have zero effect on the environment. We are marching ahead with this mantra.

The Government believes that only if we trust our citizens and entrepreneurs we can protect the environment more effectively. Due to this entrusting, partaking in the country has increased, and the results arealready visible in the enhancement of the country's forest cover.

Tomorrow, the government has taken another major decision in this direction. This decision is my 12th declaration of today. The government has made a major amendment in the Company Act to provide MSMEs some relief from legal complexities.

Friends, there were such provisions in the Companies Act so far, there were such laws related to them that, due to minor mistakes or unintentional violations, it was relegated asa crime. You were tried like a criminal. Due to these minor or inadvertent mistakes many times the merchants have often been jailed. You were forced into legalities and several court visits to correct your mistakes.

All this came at a cost of your precious time and money. It also harmed your self esteem. Small and medium enterprises have been acing a lot of trouble because of this.

I am happy to share with you all that the government has issued an Ordinance to save from such perils.

The rules implemented presently have now been changed by the government. Now you will not have to go to court to rectify the minor mistakes. Now, for even the smallest violation, you can simply visit the relevant department and rectify all those mistakes by following few simple procedures.

Another advantage of this is that, more than 60 percent of cases which are filed in different special courts will now be out from there. I have been told that the number of such cases is not in thousands but in lakhs. Because of this, many of the cases will go under regional directors of NCLT-National Company Law Tribunal. If this happens then the case hearings will speed up towards faster resolution.

Friends, the government has also provided relief to small scale industries and single-owned companies. They were subjected to many penalties earlier which has been reduced to half now.

Friends, now I move to the category "E".While taking these big decisions the government also made efforts to ensure social security to the skilled labours, artisans and labourers working in MSMEs.This is very crucial as this is an unorganised sector.

That's why the government is running a campaign and has decided that the MSME workers across the country should be linked to the government's social security schemes. The Government will ensure that workers working in MSME have a Jandhan account and are registered as beneficiaries of social security like Prime Minister's SurakshaBimaYojna and Insurance Scheme likePradhanMantriJyotiBimaYojna.

If the factory is a bit larger, then the facilities like Employee Provident Fund and ESIC are being acscertained. Meanwhile, the new recruitees in MSME sector shall be eligible for the benefit of the Prime Minister's Employment Incentive Scheme.

Friends, these 12 decisions in the era of Globalisation will certainly strengthen the MSME sector and begins a new paradigm.

Loan facility in just 59 minutes, loan through GST portal, entrepreneurs linked to GST enjoy enhanced interest rates, cheap export credit, the decision to register all government companies as well as those with a turnover of more than 500 milliononTReDS platform and, government mandate of minimum 25 percentpurchase to be made from MSME's, compulsory threepercentpurchase from women entrepreneurs, registration of all government companies on GeM, 20 HUB and 100 Spokes nationwide for Technology Upgradation, formulation of Pharma Clusters, changes in labor laws, ease of return, inspection report in 48 hours, simplification of procedures related to environmental clearance and major changes in the Companies Act, all these decisions are going to strengthen the MSME sector and take it to new heights.

I urge the Center and the state government employees to work further and contribute proactivelyin this mammoth nation building mission. With your earnest efforts, these decisions will bear optimal results and their benefits will reach the small entrepreneurs across the country.

Friends, when my team is shouldering such a mission, and will put in so much hard work, then it is obligatory for me to also contribute in a big way.

Therefore, I undertake the responsibility to personally review 100 such districts which have a legacy of MSMEs and are specializedin a certain skill or craft. I will personally scrutinise the work being carried out there. I will join the team working on the ground zero and supervise them for the next 100 days. I will offer hands onsupport while working hand in hand with you and lead it towards success.

 

Friends, all you MSMEs of India are really the Aspirational India, Ambitious India. You can see the result of your hard work. With these hard earned earnings, MSMEs nurture themselves from seeds to big enterprises in the future and become a role model for new entrepreneurs.

MSMEs  are to ensign the government's vision of nurturing more Job Creators in place of Job Seekers. You are not just entrepreneurs but one of the main pillarscreating New India.

I sincerely hope these campaigns will be beneficial for small scale industries, and MSMEs across the country will reap the benefitsof all these decisions.

I am also convinced that small enterprises will further give a new dimension to the industrial revolution of the country, and will lay the foundation stone of technology driven clean business.

With all these developments you all shall contribute in escalating the momentum and vitality of Make In India initiative.With this conation I conclude my talk.

I am sure that this Deepawali will not only be auspicious for all of you, but will be harbinger of benefits and new opportunities for the entire MSME sector of the country.

Best wishes to all of you!

Thanks a lot!

 

 

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