Three months after receiving approval from the Cabinet led by Prime Minister Narendra Modi, the World Bank-funded central government programme Raising and Accelerating MSME Performance (RAMP) for MSMEs was officially inaugurated on Thursday. Despite being announced by the government and the World Bank back in 2020, the five-year MSME RAMP Scheme will start in the current fiscal year 2022–2023 to support Covid–hit MSMEs in their business recovery. For the previous few years, MSMEs have made up about 48% of India’s exports. India’s exports increased significantly in FY22, rising to $422 billion from their previous peak of $330 billion.
Table of Contents
About MSME RAMP Scheme 2022
MSME RAMP Scheme or “Raising and Accelerating MSME Performance” is a new programme that would start in FY 2022–2023. A USD 808 million or Rs 6,062.45 crore project was approved by the Union Cabinet, which was headed by Prime Minister.MSMEs contribute almost one-third of India’s GDP. MSMEs contribute 30% of India’s total income of Rs. 100. Everyone benefits from the MSME sector’s growth. Over Rs, 1,400 crores have been released under Rs 50,000 crore Self-Reliant India Fund for MSMEs, and 18,000 MSMEs have been digitally transferred over Rs 500 crore.” MSMEs are important to the development of the nation. MSMEs provide almost one-third of India’s GDP. MSMEs contribute 30% of India’s total income of Rs. 100. Everyone benefits from the MSME sector’s strengthening.
MSME RAMP Scheme Highlights
|Name of the scheme
|MSME RAMP Scheme
|to support Covid–hit MSMEs in their business recovery.
Features of MSME RAMP Scheme
- The scheme would be implemented over the next five years.
- In June of last year, the World Bank authorised Rs 3750 crore of the total programme budget. The government would pay the remaining expenditure of Rs 2312.45 crore.
- The World Bank stated that RAMP aims to improve the performance of 5.55 lakh MSMEs in a statement from June 2021.
- According to a statement made by the Cabinet in March of this year, an apex National MSME Council led by the Minister for MSME would be responsible for monitoring RAMP and overseeing its policy implementation.
Objective of MSME RAMP Scheme
- To support the ministry’s ongoing MSME programmes, the financial assistance will be allocated to the MSME Ministry’s budget based on “Disbursement Linked Indicators” (DLIs).
- Implementing the National MSME Reform Agenda, advancing center-state collaboration in the MSME sector, bolstering the receivable finance market for MSMEs, boosting the efficacy of the CGTMSE programme, and lowering the incidence of late payments are only a few of the DLIs.
- The scheme aims to assist MSMEs in realising their export potential and enhancing their engagement in the global value chain.
- “This step has been taken to simplify the export procedure for first-time exporters, whether it be in terms of monetary help, certification-related support, etc.
- As per the government, No matter how big your product is, there should be as many MSMEs as possible to consider the global market. Trade, technology, and tourism would be used to evaluate the work that our embassies abroad have done.
- “You (missions) would have to inform the government how much merchandise that nation imported from India, whether that nation’s technology was exported to India, and how many citizens of that nation made tourist visits to India.
Districts and States Covered
All States/UTs will be asked to create SIPs, and the funding for the ideas included in SIPs will be determined by the evaluations of those proposals.
The funding would be determined by objective selection criteria, and the MoMSME would have a strict mechanism in place for evaluating and approving SIPs.
MSME RAMP Scheme Application Process
Applicants who want to fill the form for MSME RAMP Scheme can do it by going to their official website. However, the government has not made the official website public yet. Once the government announces the website for the scheme, we will notify the same here.