Table of Contents
The Observation
- MSMEs have been accepted as the engine of economic growth and for promoting equitable development not just in India but al over the world.
- In India, the MSME is the second largest employment generating sector after agriculture. It provides employment to about 12 cr Indians.
The Observation
The Observation
The News
Background of RAMP
- The Reserve Bank of India had constituted an ‘Expert Committee on Micro, Small and Medium Enterprises’ under the Chairmanship of Shri U K Sinha in 2019 to suggest long-term measures for the economic and financial sustainability of the MSME sector.
- RAMP (Raising and Accelerating MSME Performance) has been launched on the basis of the recommendations from the UK Sinha Committee report in June 2019.
- The report had suggested multiple regulatory, financial, and implementation reforms for targeted interventions among MSMEs to solve their recognized challenges, the most prominent being lack of access to affordable credit and capacity building.
RAMP Scheme
- Raising and Accelerating MSME Performance” (RAMP) scheme is a World Bank assisted Central Sector Scheme, supporting various Covid-19 Resilience and Recovery Interventions of the Ministry of Micro, Small and Medium Enterprises.
- RAMP is a Rs 6,062.45 crore World Bank assisted central sector programme. Out of the total outlay, Rs 3750 crore was already approved by the World Bank in June 2021 under the Credit Linked Capital Subsidy and Technology Upgradation Scheme. Now the remaining Rs 2312.45 crore outlay would be funded by the government.
RAMP Scheme
- Objectives of RAMP:
- Strategic Investment Plans (SIPs) for MSMEs
- Providing access to market and credit
- Centre state coordination & partnership
- Addressing issues of delayed payments
- Greening of MSMEs
RAMP Scheme – The PLAN
- In terms of the flow of funds, the capital would be routed through RAMP into the MSME Ministry’s budget against Disbursement Linked Indicators (DLIs)
- The DLIs would include
- Implementing the National MSME Reform Agenda
- Accelerating MSME sector centre-state collaboration
- Enhancing the effectiveness of the Technology Upgradation Scheme (CLCS-TUS)
- Strengthening the receivable financing market for MSMEs
- Enhancing the effectiveness of Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE)
- Reducing the incidence of delayed payments
RAMP Scheme – The PLAN
- RAMP’s monitoring and policy overview would be undertaken by an apex National MSME Council headed by the Minister for MSME. Other ministries would also have their representations.
- According to the World Bank, RAMP will focus on five first mover’ states – Gujarat, Maharashtra, Punjab, Rajasthan, and Tamil Nadu that are home to reportedly 54 per cent of all registered MSMEs in the country.
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