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PM Announces Raising and Accelerating MSME Performance scheme

“Raising and Accelerating MSME Productivity” (RAMP) is a new Central Government Scheme with a five-year duration (2021–22–2025-26) and a budget of INR 6062.45 Cr, of which the World Bank will contribute INR 3750 Cr (USD 500 Mn) and the rest will be covered by the Indian government. The Reserve Bank of India’s Expert Committee report (June 2019), which recommended a number of regulatory, financial, and implementation reforms as well as firm-level access reforms to provide targeted interventions to MSMEs across identified challenge areas, served as the foundation for RAMP, an intervention.

Objective of the scheme:

The program intends to increase the states’ ability to adopt and cover Medium Small and Micro Enterprises (MSME) while maximising the benefits of current MSME programs.

In order to make MSMEs competitive and self-sufficient, it will complement the Aatmanirbhar Bharat Abhiyan by fostering innovation, encouraging ideation, and incubating new businesses and entrepreneurship. It will do this by creating quality standards, improving practices and procedures, enhancing market access, and implementing technological tools and Industry 4.0.

Scheme overview:

The program aims to increase market and credit access, strengthen state and federal institutions and governance, enhance state-federal cooperation, solve the problem of delayed payments, and green MSMEs.

The RAMP initiative will work to expand implementation capacity and MSME coverage in States in addition to increasing the MoMSME’s capability at the federal level.

Impact of RAMP:

By enhancing the impact of current MSME programs, particularly on the competitiveness front, RAMP will address the general and COVID-related difficulties in the MSME sector.

The program will also strengthen the areas of capacity building, support, skill development, quality enrichment, technological advancement, digitization, outreach, and marketing promotion, among others, that have not received appropriate attention. The RAMP program will support vulnerable communities and environmental activities while also facilitating finance, promoting the market, and creating jobs through improved collaboration with the States.

By encouraging innovation and improvement in industry standards, practises, and by giving MSMEs the necessary technical inputs to make them competitive and self-sufficient, RAMP will complement the Atma Nirbhar Bharat mission by boosting exports, displacing imports, and promoting domestic manufacturing.

Thus, RAMP would be a:

  • “Policy Provider” will be able to deliver more cost-effective and effective MSME interventions to boost competitiveness and company sustainability thanks to their improved capability for designing evidence-based policies and programmes.
  • By using benchmarking, sharing, and showcasing best practises and success stories from other countries, “Knowledge Providers”
  • And “Technology Providers” can transform MSMEs into digital and technological powerhouses by giving them access to cutting-edge technology such as artificial intelligence, data analytics, the internet of things (IoT), machine learning, and other cutting-edge technologies.

Targets and the Implementation Strategy Of RAMP:

In light of the preliminary missions and investigations, the program has selected two results areas, namely:

  • enhancing the MSME program’s governance, institutions, and support for market access, firm capabilities, and financial access.
  • The Ministry’s budget would receive funds through RAMP in response to Disbursement Linked Indicators (DLIs) to support continuing MoM programmes, with an emphasis on enhancing market access and competitiveness.

The World Bank would only contribute money to RAMP if the following Disbursement Linked Indicators were met:

  • Putting the National MSME Reform Agenda into Practice
  • Accelerating center-state-MSME sector cooperation
  • Increasing the efficiency of the technology upgrade program (CLCS-TUS)
  • Developing the MSMEs’ Receivable Financing Market
  • Enhancing the delivery of “Greening and Gender” and the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE)
  • Reducing the incidence of delayed payments

For further queries go to the link: https://msme.gov.in/whatsnew/environmental-and-social-assessment-essa-raising-and-accelerating-msme-performance-ramp

 

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