The program aims to improve access to market and credit, strengthening institutions, enhance Centre-state partnerships, address issues of delayed payments and greening of MSMEs, and ramp up implementation capacity and MSME coverage in states.
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.
Timeline
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.
Expenditure
The total outlay for the program is Rs 6,062.45 crore, of which Rs 3750 crore would be loaned by the World Bank and the remaining 2312.45 crore would be contributed by the Indian government.
MSMEs in India
As of March 2022, there were 7.9 million (79 lakh) MSMEs in India. They contribute about 30% of the country’s Gross Domestic Product (GDP). Such enterprises employ about 110 million (11 crore) people across India and make up nearly 48% of the country’s overall exports.
