Nirmala Sitaraman Launches “Ubharte Sitaare”, a new fund for MSMEs.

by mehekkaoberoi

Bасkgrоund:-

  • Nirmala Sitharaman, the finance minister, launched the “Ubharte Sitaare” on Saturday 21st August 2021.
  • Despite the fact that the initiative was introduced in her FY21 budget, implementation was delayed due to the epidemic.
  • MSMEs are critical to keeping the economy moving, according to Nirmala Sitharaman, who stated in her budget speech last year that they create jobs, innovate, and take risks.

Linkаges:- 

  • “Ubharte Sitaare” scheme is launched to help micro, small and medium enterprises (MSMEs) which could be future champions with good export potential.
  • This has previously been tried in some developed countries, such as Germany. They identified champion sectors and attempted to support and handhold them, providing them with the appropriate technology and funding infusions that made a world of difference for many of these champion sectors.
  • She emphasized that MSMEs benefited from legislation requiring government ministries, departments, and public sector companies to acquire at least 20% of their goods and services from MSMEs.

Сurrent  Sсenаriо:-

  • The ”Ubharte Sitaare Fund” has been set up by Exim Bank and SIDBI.
  • The fund, which has a corpus of Rs 250 crore, is aimed at identifying export-oriented units with technological, product or process advantages in their sectors

The program’s objective are to:

  •  Improve India’s competitiveness in select sectors through finance and extensive hand holding;
  •  Identify and nurture companies with differentiated technology, products, or processes, and help them expand their export business;
  • Assist units with export potential that are unable to scale up their operations due to a lack of capital;
  •  Identify and mitigate challenges faced by successful companies which hinder their exports
  • Companies will be chosen for support based on their distinctive value offered in technology, goods, or processes that meet global demand, as well as their fundamentally sound financials and outward orientation.

Imрасt:-

  • An identified company is supported under the scheme, even if it is currently underperforming or unable to realize its latent potential for growth.
  • This is tailor made for MSMEs to identify champions among them and to also support them.
  • The programme identifies such issues and offers assistance in the form of a structured support package that includes equity, loans, and technical assistance.
  • According to the government,This fund will go a long way in making India a major exporting hub.
  • With an annual sales of up to Rs. 500 crore, small and mid-sized businesses will be able to access worldwide markets.
  •  This will create new job opportunities for people. MNREGS has had its budget raised from Rs 66,000 crore to Rs 1 lakh crore. “ODOP is a positive step forward.”

Content contributed Meghna.Manoj

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