Raising and Accelerating MSME Performance (RAMP):

GS Paper 2:

Topics Covered- Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context:

Recently, The Union Cabinet approved a USD 808 million or Rs 6,062.45 crore, World Bank assisted programme on “Raising and Accelerating MSME Performance” (RAMP).

• RAMP is a new scheme and would commence in FY 2022-23.

What is RAMP?

• “Raising and Accelerating MSME Performance” (RAMP) is a World Bank assisted Central Sector Scheme.
• It has been launched to support various Resilience and Recovery Interventions of the Ministry of Micro, Small and Medium Enterprises (MoMSME).
• In addition to building the MoMSME’s capacity at the national level, the RAMP program will seek to scale up implementation capacity and MSME coverage in States.

Objective:

The programme aims at improving access to market and credit, strengthening institutions and governance at the Centre and State, improving Centre-State linkages and partnerships, addressing issues of delayed payments and greening of MSMEs.

RAMP will function as a:

1. ‘’Policy Provider’’ through the enhanced capacity for evidence-based policy and program design, to enable the delivery of more effective and cost-efficient MSME interventions to improve competitiveness and business sustainability.
2. “Knowledge Provider” through bench-marking, sharing and demonstrating best practices/success stories by leveraging international experiences.
3. “Technology Provider” by providing access to high-end technology resulting in the digital and technological transformation of MSMEs through state of art Artificial Intelligence, Data Analytics, Internet of things (IoT), Machine Learning etc.

Background:

RAMP was formulated and proposed by the Government of India, for strengthening MSMEs in line with the recommendations made by U K Sinha Committee, KV Kamath Committee and Economic Advisory Council to the Prime Minister (PMEAC).

Need for and Significance:

• 40% of MSMEs in India lack access to finance. MSMEs are the backbone of the Indian economy.
• The RAMP programme with impacts across the country will directly or indirectly benefit all 63 million enterprises that qualify as MSMEs.

Significance of MSMEs:

With around 63.4 million units throughout the geographical expanse of the country, MSMEs contribute around 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities as well as 33.4% of India’s manufacturing output.

• They have been able to provide employment to around 120 million persons and contribute around 45% of the overall exports from India.
• About 20% of the MSMEs are based out of rural areas, which indicates the deployment of significant rural workforce in the MSME sector.

Insta Curious:

Did you know that Maharashtra tops India’s list in the number of micro, small and medium enterprises (MSME) owned by entrepreneurs from the Scheduled Castes with as many as 96,805 enterprises? Know more about MSMEs in the country here.

InstaLinks:

Prelims Link:

1. Share of MSME sector in India’s GDP and exports.
2. RAMP Programme.
3. The basic criteria for MSME classification.
4. What is referred to as Udyam according to the Government of India?
5. Classification of MSMEs.
6. What is V- shaped recovery?
7. SDGs on MSMEs.

Mains Link:

What is the potential of India’s MSME sector? Discuss the challenges and concerns associated with the growth of MSME sector in India.

Sources: PIB.