Support and Outreach Initiative for MSME Sector for MSMEs Sector

Why in the discussion?

On November 2, 2018, the Prime Minister launched a historic cooperation and contact program for the Micro, Small and Medium Enterprises (MSMEs) sector. Under this program, 12 important announcements have been made which will help in the development and expansion of MSMEs across the country as well as facilitate them.

Announcements under cooperation and contact program

  1. MSMEs were announced to launch a loan portal to provide easy loans. Through this portal, in just 59 minutes, loans up to Rs one crore can be given theoretical approval. A link to this portal will be provided through the GST portal.
    2.  
  2. Announcement of two percent interest subsidy for all GST registered micro, small and medium enterprises (MSMEs) Exemption of interest from three percent to five percent for the exporters who took loans before and after shipment was announced.
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  3. All the companies with turnover of more than Rs 500 crores are required to be included in the business receipts e-Discounting System (TREDS) portal. By joining this announcement, entrepreneurs will be able to take loans from banks on the basis of their upcoming receipts. This will solve the problems of their cash cycle.
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  4. Public sector companies are now asked to buy 25 percent of their total purchases from MSMEs instead of 20 percent.
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  5. The fifth anniversary is related to women entrepreneurs. Of the 25 percent purchases made from MSMEs, 3 percent of the purchases have now been reserved for women entrepreneurs.
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  6. All public sector undertakings of Central Government must now be part of GeM (Government e-Market place). All of their vendors should be registered with GeM.
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  7. Tool rooms located across the country are now an important part of product design. 22 centers related to this will be made in the entire country and 100 spokes will be installed in the form of tool room.
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  8. Clusters will be made for micro, small and medium enterprises of pharma sector. The Central Government will bear 70 percent of the cost of construction of these clusters.
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  9. The 9th Announcement is about the simplification of Government processes. Under this declaration, the returns will be filed once in a year under eight labor laws and 10 central rules.
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  10. The 10th declaration is that the visits by the Inspector of Establishments will now be determined by computer-based allotment.
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  11. In relation to setting up the unit, entrepreneurs are required to have two clearances- Environment clearance and agree to set up unit. Under the 11th declaration, these two clearances have been included in single permission under air pollution and water pollution rules. Now returns will be accepted through self-certification.
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  12. An ordinance has been brought under which the entrepreneur will not have to go round the courts for minor violations in relation to the Companies Act. They will be corrected under easy procedures.

Major aspects of MSMEs

  • MSMEs are one of India's leading employers. There are five important aspects related to the convenience of MSMEs:
  1. Access to loans
    2.  
  2. Market access
    3.  
  3. Technical upgradation
    4.  
  4. Ease of business
    5.  
  5. Feeling of security of employees
  • Through the above announcements, suitable solutions for these five areas will be available.

Social Security for MSMEs Sector employees

  • Under this program, social security has also been mentioned for the employees of MSMEs sector. Also, a mission will be started to ensure that they have public money accounts, provident fund and insurance.

Forward path

  • These decisions will help in strengthening the MSMEs sector in India. During the next 100 days, the implementation of this outreach program will be closely monitored.
  • All these announcements will prove to be a new chapter for the MSMEs sector.

Why in the discussion?

Recently, China has lifted the 25-year ban on scientific and medical uses of tiger bones and rhinoceros horns.

key points

  • According to conservationists, the removal of this ban will be disastrous for endangered species globally.
  • It is worth mentioning that traditional Chinese medicine (TCM) uses tiger bone and rhinoceros horn and is used for the treatment of insomnia and arthritis.

Background

  • The parts of the tiger were removed from the official TCM Pharmacopoeia, which is a list controlled by China's Ministry of Health, when the country first banned the trade of various parts of the tiger body in 1993.
  • World Federation of the International Non-Profit Chinese Medical Societies established in Beijing in 2010, urged its members to stop the use of parts of tiger or other endangered wildlife.
  • During the rule of President Xi Jinping, China demanded to implement strong security arrangements for wildlife and natural resources and to make themselves environmentally friendly.
  • In the year 2016, China had banned the sale of ivory because hunting for elephant hunting for the treatment of throat cancer increased prey.
  • However, this more stringent rule has created a conflict situation between Chinese government pharmaceutical companies.
  • Apart from this, the Chinese demand for animal life has increased due to high living standards, which is valuable for their life-enhancing powers.

Concern of India

  • Officials and wildlife conservationists in Assam are worried about the harmful effects of one-horned rhinoceros in the state because China has lifted the 25-year ban on the use of rhinoceros horn and tiger bone products and trade.
  • According to the latest statistics, the number of horns in the Kaziranga National Park in Assam is 2,413 and out of which five rhinos were killed by the predators in 2018. The main reason for concern is that from hunting here, rhino horns will turn into 'legal' products in China's markets and it is an indirect way of opening a market for such products.
  • This will encourage rhinoceroses and smugglers, who can try to increase their activities with the hope of sending their illegal products in China as legally acceptable products.
  • Many research and study papers have mentioned that horns of Assam preyed are sent to China through Myanmar. In a report of IUCN in 2017, it has been said that Myanmar's Shan State is a notorious wildlife trafficking center through which rings of rhinoceros are taken in China.
  • The World Wildlife Fund has asked China to keep the ban, because such business will give disastrous results globally.

Global Fund for Nature Protection (Worldwide Fund for Nature-WWF)

  • The WWF was formed in the year 1961 and it works on issues related to environmental protection, research and maintenance.
  • Earlier, its name was the World Wildlife Fund.

an objective

  • Protecting genetic organisms and ecological differences.
  • Ensuring that renewable natural resources are being used in conjunction with the current and future interests of all the organisms of the Earth.
  • Exploitation, exploitation of resources and energy, exploitation and consumption at minimum level.
  • To prevent the growing degradation of natural environment on our planet and ultimately to overthrow this process and to help in the formation of a future in which human nature can be reconciled.

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