"A series of major reforms undertaken over the past year will allow real GDP growth to reach 6.75 per cent this fiscal and will rise to 7.0 to 7.5 percent in 2018-19, thereby re-instating India as the world's fastest growing major economy," the Survey said. Finance Minister Arun Jaitley tabled the survey in parliament.
The reform measures undertaken in 2017-18 can be strengthened further in 2018-19, the survey added. The Survey underlined that the economy began to accelerate in the second half of the year and can clock 6.75 per cent growth this fiscal due to the launch of transformational Goods and Services Tax reform on July 1, 2017 and resolution of the long-festering Twin Balance Sheet problem by sending the major stressed companies for resolution under the new Indian Bankruptcy Code. According to the Survey a total outstanding credit of Rs 26,041 billion as in November 2017, 82.6% of the amount was lent to large enterprises and MSMEs got only 17.4 % of total credit.
As the Economic Survey states in detail, the major schemes implemented for the development of MSME sector, as reported by ET are:
i. Prime Minister's Employment Generation Programme (PMEGP) is aimed at generating self-employment opportunities by establishing micro-enterprises in the non-farm sector by encouraging and assisting traditional artisans and unemployed youth.
ii. Credit Guarantee Scheme for Micro and Small Enterprises covers collateral free credit facility (term loan and/or working capital) extended by eligible lending institutions including Non-Banking Financial Company (NBFC) to new and existing micro and small enterprises up to Rs 200 lakh per borrowing unit.
iii. Credit Linked Capital Subsidy Scheme (CLCSS) aims at facilitating technology upgradation of the MSME sector.
iiv. The Government has also initiated the Pradhan Mantri Mudra Yojana for development and refinancing activities relating to micro industrial units. The purpose of Micro Units Development and Refinance Agency (MUDRA) is to provide funding to the non-corporate small business sector.