Registration on GeM will Enable MSMEs to Receive Bulk Orders
A conference titled ‘Ease of Doing Business – Institutional Support to MSMEs’ has been organised, by the MSME Committee of the PHD Chamber of Commerce and Industry, at PHD House, New Delhi.
Union Minister of MSME (Minister of State), Bhanu Pratap Singh Verma was invited as the chief guest in the event. While addressing the conference he said that the Ministry of MSME has undertaken a plethora of steps to promote and strengthen MSMEs over the last few years. Some other key mentions from his address were changing the definition of MSMEs, adopting a new simplified 'Udyam Aadhar' registration, Champions portal, credit guarantee extension, and so on. In addition the minister said that there is still so much work to be done to strengthen the MSME sector. He also mentioned the enhancement made in the budget for the MSME sector for the fiscal year 2022-23. The budget was increased to INR 21,422 Cr from INR 15,700 Cr the previous year, providing greater financial support to MSMEs.
The minister said, “To mitigate the economic impact of COVID 19, the Government of India and the Reserve Bank of India announced a number of Credit Support Measures for MSMEs. The government's Atmanirbhar Bharat Package for the MSME sector included some significant financial assistance. It did, in fact, assist MSMEs in not only restarting their operations, but also in providing novel prospects to a huge number of businesses.”
According to Pradeep Multani, President of PHDCCI, “The MSME sector in India is the backbone of the Indian economy. He stated that MSME is one of the most essential categories that allow the economy to grow at a much faster rate. MSMEs not only serve an important role in offering vast job prospects at a lower capital cost than large enterprises, but they also contribute to industrialisation. They aid in the development of rural and underdeveloped areas, minimise regional imbalances, and provide a more fair allocation of national revenue and wealth.”
He also emphasised the significance of Ease of Doing Business, stating that it is critical for the promotion and growth of MSMEs. To do this, the government must implement new policies and make regulatory adjustments, while also strengthening the institutional support structure. He also asked banks to look into the problem of collateral, which may become a significant burden for MSMEs seeking loans.
Dr H P Kumar, former Chairman and Managing Director of the National Small Industries Corporation and Advisor to the PHDCCI, spoke about the numerous government programmes for MSMEs in his theme talk. He emphasised the goal of creating jobs through the Prime Minister Employment Generation Programme (PMEGP) by establishing micro firms in the country.
Dr. S S Acharya, General Manager of the Small Industries Development Bank of India, stated that just 94 lakh MSMEs are registered on the Udyam Portal, which is only about 15-20 percent . Around 80 percent of MSMEs operate outside of the formal system, which is a significant percentage. To access formal credit for business operations, MSMEs must be registered with the government.
Yogendra Pathak, Additional CEO & CFO, Government e-Marketplace, encouraged all MSMEs to register on the GeM platform, which might help them receive bulk orders from various Central and State Governments. Furthermore, he emphasised that the GeM portal is a completely contactless, paperless, and seamless system that requires minimal involvement.