Why in news? The Ministry of Micro, Small and Medium Entreprises, Government of India organised the first meeting of the National MSME Council at Vigyan Bhawan, New Delhi

Highlights:

• The event was organised under the aegis of the Central Sector Scheme “Raising and Accelerating MSME Performance” which was launched by the Prime Minister Shri Narendra Modi in June 2022.
• The RAMP programme aims at improving access to market and credit, strengthening institutions and governance at the Centre and State, improving Centre-State linkages and partnerships, addressing issues of delayed payments and greening of MSMEs.

About National MSME Council

• It has been set up to work as an administrative and functional body to oversee inter-Central Ministerial/Departmental co-ordination, Centre State synergies and advise / monitor progress on the reforms mandated in the MSME sector including the RAMP programme.

About Raising and Accelerating MSME Performance (RAMP) programme.

• Government has launched a World Bank supported Central Sector Scheme called RAMP.
• The scheme aims at strengthening institutions and governance at the Centre and State, improving Centre-State linkages and partnerships and improving access of MSMEs to market and credit, technology up gradation and addressing issues of delayed payments and greening of MSMEs.
• RAMP programme will be implemented over a period of five years.

Aim of RAMP

• Interventions under RAMP programme, by way of increasing access of MSMEs to market, technology and credit, increasing outreach to more MSMEs, inclusion of service sector, gender and greening initiatives etc., are aimed at increasing the performance of the MSME sector, thus resulting in more employment opportunities.

Components

• The scheme includes the preparation of Strategic Investment Plans (SIPs), in which all states and union territories will be invited.
• An apex National MSME Council would conduct overall monitoring and policy review of RAMP scheme. It would be headed by the Minister for MSME, include representation from various ministries and supported by a secretariat.

Benefits

• RAMP will address the generic and Covid-related problems in the MSME sector.
• It will improve capacity building, handholding, skill development, quality enrichment, technological upgradation, digitization, outreach and marketing promotion.
• It will help in the generation of employment.
• It will promote a larger formalisation in the MSMSE sector.
• It will complement the AtmanNirbhar Bharat mission to encourage innovation and enhancement in industry standards, practices, and providing necessary technological inputs to the MSMEs.

Background:

• The RAMP scheme is in line with the recommendations by UK Sinha Committee, KV Kamath Committee and Economic Advisory Council to the Prime Minister (PMEAC).
• The Reserve Bank of India (RBI) had formed the UK Sinha Committee in 2019 to suggest measures for the economic and financial sustainability of the MSME sector.
• The scheme was announced by Finance Minister Nirmala Sitharaman in the Union Budget 2022-23.
• The Union Cabinet, chaired by Prime Minister Narendra Modi, approved it in March 2022. PM Modi launched the scheme at a program in New Delhi on June 30, 2022.