Small Businesses Capable of Doubling Farmers’ Income by 2022

Som Parkash, Minister of State for Commerce and Industry, has stated that the micro, small, and medium enterprises (MSMEs) play an essential role in achieving the country’s twin goals. The goals are doubling the farmers’ income by 2022 and making the country a $5 trillion economy. 

One of the goals announced during the budget was doubling the farmers’ income by FY22. To realise this goal, the government had committed to set up 10,000 new Farmer Producer Organisations by 2022. It was noted that the agriculture sector’s growth dropped from 5.1% in Q1 FY19 to 2% in Q1 FY20. 

Further, the contribution of MSMEs to the country’s GDP stands at 29%; the government is looking forward to extending this to 50% in the next five years. As a result, the MSMSE Minister Nitin Gadkari has been urging entrepreneurs to come up with new ideas, improve business planning, and reduce costs. He also expressed that many states in the nation have rich minerals and raw materials in abundance. They must be converted into business opportunities and utilised well.

Also Read: Government moots setting up more technology centres for MSMEs

The government is being enthusiastic about leveraging small businesses’ potential to boost the economy of the country. This is because the country has taken a long leap of 14 ranks to reach 63rd position in the World Bank’s Ease of Doing Business 2020 survey.

Following this recognition, the India International Trade Fair will be held with the theme of Ease of Doing Business. The fair aims at providing a platform for MSMEs, large businesses, artisans, and non-government agencies to market their products and services to their potential customers.

To increase productivity and quality of goods, the government is working on setting up technology training centres with international standards. Already, there are 18 technology centres called Tool Rooms across the country. The government is planning to increase it to 153 centres that can train around 8 lakh individuals at once on different skills. 

For any clarifications/feedback on the topic, please contact the writer at apoorva.n@cleartax.in