Conversion of knowledge into wealth is important for development of manufacturing sector in India: Union Minister Nitin Gadkari

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New Delhi: Union Minister for MSME and Road Transport and Highways, Shri Nitin Gadkari held meeting yesterday via video conferencing with the representatives of the Engineering Exports Promotion Council (EEPC) to discuss on the growth of the sector post the pandemic situation.

He motivated the panel by suggesting that even though there are short term difficulties being faced by each sector of the economy during the lockdown, “positivity and self-confidence” can help one overcome the immediate hindrances. He stressed on the fact that effective collaboration and cooperation among all stakeholders in the economy can help overcome the current pandemic.

During the interaction, the Union Minister highlighted the importance of MSME sector and applauded the contribution made by the sector in country’s GDP, export and employment generation. He said that the MSME sector currently contributes to about 48% to the country’s export and this has to be further enhanced by means of technological upgradation and product development. In addition, he added that substantial decrease in logistics, transport and labour cost would help in development of the manufacturing industry in India. He mentioned that the other important factor which needs to develop is packaging and standardization facilities in India to support exports from the country – as the world gradually overcomes the Covid-pandemic.

He added that the Ministry of MSME has created a Fund of Fund to give equity support to the Indian MSMEs. MSMEs which have good turnover, GST return record and income tax record will be reassessed, given a rating and thereby supported with 15% equity from the government. This will enable them to gradually raise money from the capital market, enlist themselves in the proposed MSME stock exchange and attract foreign investment.

He further suggested that the industries should invest about 2-3% of their annual profits into research as the conversion of knowledge into wealth is important for development of the industry.

He requested the panel to send across their specifics suggestions and assured all the help from the government.