August 22, 2014 8:14 PM

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Suggest ideas to promote industry: MSME Min to States

Minister for Micro, Small and Medium Enterprises, MSMEs Kalraj Mishra has called for better coordination between states and Centre for the growth of small scale industry in the country. He said MSMEs have played an important role in the economic and social development and government is committed to provide skill and employment for every hand.Addressing a National Conference of State Ministers for industries and MSME in New Delhi, he asked state governments to suggest new ideas to promote small industry. The minister urged the state governments to contribute 100 crore rupees in the Credit Guarantee Fund Scheme to get a collateral free loan of 1000 crore rupees to start new enterprises in their areas. He said government is soon going to launch online registration system to simplify the process for setting up new enterprises.The Minister also emphasized that the state governments must implement all those schemes initiative by the central government to promote the Prime Minister Employment Guarantee Programme, for employment generation in the rural area.AIR correspondent reports that MSMEs are the largest employment provider sector in the country. MSMEs contribute 8 per cent of country's GDP. Beside this, the share of MSMEs is 45 per-cent in the manufacturing output and 40 per cent in the total exports of the country.

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