FM launches Ubharte Sitaare Fund; says Modi govt created supportive ecosystem for MSMEs

Lucknow: Union Finance Minister Nirmala Sitharaman on Saturday said the micro, small and medium enterprises (MSMEs) are the backbone of the economy, and the Narendra Modi government has given the sector its rightful place.

Addressing the launch of the 'Ubharte Sitaare Fund' here, Sitharaman said, "The government of Prime Minister Narendra Modi has given a proper identity to MSME. The place, which it had not got in decades, is being given to it, and it will be improved." "In the last two years, the Centre has done a number of different things. The government has changed the definition of MSME in a very flexible manner. Recently, a bill was tabled in the Parliament through which the MSME sector will directly benefit," she added.

Sitharaman further said MSME businessmen will not have to undertake an audit for submission of their accounts. "The government has faith in them, and they can self-attest their accounts and certify them," she said.

Speaking about the geographical indication (GI) tags for specialised products, she said while they are scattered across the country, in Uttar Pradesh, Banaras and its immediate surroundings alone boast of eight GIs.

Sitharaman urged the state's MSME Minister Sidharth Nath Singh to establish an MSME chamber in every district, and hold awareness programmes about the 'Ubharte Sitaare Fund' so that entrepreneurs working under the One District, One Product (ODOP) scheme can know about its benefits.

Uttar Pradesh has the highest number of MSMEs and has effectively implemented the One District One Product programme, which provides the ideal ecosystem for success of an initiative like the Ubharte Sitaare Fund. The fund will go a long way in making India a major exporting hub, she said.

Meanwhile, a tweet by Sitharaman's office said MSMEs have been at the forefront of the Modi government's economic policy through policies like change in definition of MSMEs to ensure adequate flexibility, effective implementation of ECLGS and Factoring Bill increasing the number of designated NBFCs to 9,000.

The 'Ubharte Sitaare Fund' has been set up by Exim Bank and SIDBI.

The fund is expected to identify Indian enterprises with potential advantages by way of technology, products or processes along with export potential, but which are currently underperforming or unable to tap their latent potential to grow.

Harsha Bangari, Deputy Managing Director, India Exim Bank, said the bank has developed a robust pipeline of over 100 potential proposals and supported several companies across a diverse range of sectors.