Why in news?
The Ministry of Micro, Small and Medium Enterprises (MSME) recently launched three sub‑schemes under the World Bank‑supported Raising & Accelerating MSME Performance (RAMP) programme. These initiatives aim to strengthen MSME competitiveness, promote green investments and resolve payment disputes.
Background
RAMP is a five‑year central sector scheme launched in June 2022 with support from the World Bank. It seeks to improve the market access, credit availability and technological capabilities of India’s 63 million micro, small and medium enterprises. The MSME sector contributes about 30 % of GDP and 40 % of exports but faces challenges such as limited financing, delayed payments and outdated technology. RAMP aims to address these issues by enhancing coordination between central and state programmes, improving credit guarantee mechanisms and promoting sustainable practices.
Main features of RAMP
- Centre–state collaboration: The programme encourages states to prepare strategic investment plans and coordinate with the central government to implement MSME schemes more effectively.
- Technology and market access: RAMP supports adoption of digital tools, innovation and quality certification to enhance competitiveness. It also promotes integration of MSMEs into national and global supply chains.
- Receivable financing and payment resolution: The programme aims to strengthen receivable financing markets and reduce delayed payments through online dispute resolution and improved legal mechanisms.
- Greening and inclusion: Specific measures encourage green investments and support women‑owned enterprises, reflecting India’s commitments to sustainable development.
New sub‑schemes launched
- MSME GIFT Scheme: The Green Investment and Financing for Transformation (GIFT) scheme offers interest subvention and credit guarantee support to help MSMEs adopt energy‑efficient and environmentally friendly technologies.
- MSE SPICE Scheme: The Scheme for Promotion and Investment in Circular Economy (SPICE) supports circular‑economy projects through credit subsidies, helping MSMEs reduce waste and move towards net‑zero emissions.
- MSE ODR Scheme: The Online Dispute Resolution for Delayed Payments scheme uses digital platforms and artificial intelligence to resolve payment disputes quickly, reducing cash‑flow problems for small enterprises.
Conclusion
India’s MSME sector is the backbone of its economy but struggles with credit gaps, technological limitations and payment delays. The RAMP programme and its sub‑schemes represent a coordinated effort to modernise small businesses, promote sustainability and improve ease of doing business. Effective implementation and state participation will determine whether these initiatives translate into tangible benefits for millions of entrepreneurs.
Source: PIB
