Govt aims to raise MSMEs' share in GDP to 40% to benefit rural poor

The government aims to increase the MSME sector's share in the GDP to 40 per cent to benefit the rural poor, Union Minister Nitin Gadkari said.

Currently, around 6.5 crore micro, small and medium enterprises (MSMEs) contribute 30 per cent to the GDP.

The minister emphasised that a policy has to be made to empower the poor. We are not in favour of westernization, but we are in favour of modernization, in the villages. This is the time for socio-economic transformation, the MSME minister said.

He called for lasting and transformative changes at the village level, through innovative, research-based technology specially adapted for rural areas, an official statement said.

Addressing a workshop at the Mahatma Gandhi International Hindi University at Wardha in Maharashtra, the minister pointed out that village industries and Khadi generate as much as Rs 88,000 crore on an annual basis. This can be increased if policy is flexible and innovative, and is aimed at improving the life of people living in villages. The minister also stressed that goods produced by village industries can be sold better if they are marketed better.