Raising and Accelerating MSME Performance (RAMP) Scheme

Raising and Accelerating MSME Performance (RAMP) Scheme

News: The Union Cabinet approved the “RAMP” scheme which would commence in FY 2022-23. It is line with recommendations made by UK Sinha Committee, KV Kamath Committee and Economic Advisory to the Prime Minister (PMEAC).

About:
• It is a World Bank assisted Central Sector Scheme, supporting various CoronaVirus Disease 2019 (Covid) Resilience and Recovery Interventions of the Ministry of Micro, Small and Medium Enterprises (MoMSME).
• Key component of the scheme would be preparation of Strategic Investment Plans (SIPs), where systematic efforts for identification and mobilization of MSME’s under RAMP will be made.
• Priority sectors such as renewable energy, rural and non-farm business, wholesale, village and cottage industries, women enterprises will receive key attention.

Purpose:
• Improve access to credit and market
• Address issue of delayed payments and greening of MSME’s
• Improving Centre-state linkages

Advantages of the Scheme:
• It will address general and Covid related challenges plaguing the MSME sector by enhancing existing MSME schemes, especially on competitiveness front.
• The program will be job enabler, finance facilitator, market promoter and will support vulnerable sections.
• It will help address the inadequately addressed blocks of capacity building, skill development, quality enrichment, technological upgradation, digitization.
• In States where the presence of MSMEs is on the lower side, the programme will usher in larger formalization resulting from the higher impact of the schemes covered under RAMP.
• RAMP will complement the AtmanNirbhar Bharat mission by fostering innovation and enhancement in industry standards, practices and providing the necessary technological inputs to the MSMEs.

Why MSME’s are important in India?
• They are growth engine of the Indian economy, contributing about 30% of the country’s GDP.
• In terms of exports, they form integral part of supply chain and contribute about 48% of the overall export.
• They employ around 110 million people across the country.
• More than half of the MSME’s operate in Rural India thus significantly enhancing rural growth.

Some schemes relating to MSME sector:
• Prime Minister’s employment generation programme
• MSME innovation scheme
• Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
• A scheme for Promoting Innovation, Rural industry and Entreprenuership (ASPIRE)