MSMEs are 2nd backbone of India’s economic growth: Manijhi

Puducherry: Union micro, small, and medium enterprises (MSME) minister Jitan Ram Manjhi said MSMEs serve as the second backbone of India’s economic development, positioned right after the agriculture sector. Speaking to reporters on Thursday after reviewing the ongoing schemes in Puducherry, Manjhi said MSMEs contribute an impressive 31.1% to the country’s Gross Domestic Product (GDP).Manjhi also lauded the Union territory’s performance, adding that MSME units in Puducherry are functioning remarkably well. He said registered enterprises receive structured and skill-based training. He expressed optimism that the ongoing initiative will enhance the capacity and efficiency of the local workforce.He said the ministry has instructed the banks to grant loans up to ₹1 lakh to the enterprises without demanding any collateral or security guarantees. He said the ministry also instructed the banks to offer credit facilities at highly subsidised interest rates, ranging at least 5% lower than the interest rates typically levied on other commercial or utility loans, to the enterprises to protect small industries from heavy financial burdens.