Rural industries power MSMEs with over Rs 40,000 crore sales in 2015-16

The micro, small and medium enterprises (MSME) which accounts for a large part of the rural economy in the country has been flourishing. The sales of products in the Khadi and Village Industries, which is part of MSME's, has grown by 23.9% in 2015-16 from the previous year.

Total sales in the Khadi and Village Industries had grown to Rs 41,064.17 crore in 2015-16 from Rs 33,135.90 crore. This is much larger growth from 2013-14 in which the total sales recorded was 31,154.20 crore.

This is due to the large 24.13% growth especially in the Village Industries in which sales grew to Rs 39,680.95 crore in 2015-16 from 31,965.52 crore in 2014-15.

Khahi sales however grew by 18.18% to Rs 1,383.22 crore in 2015-16 from Rs 1,170.38 crore the previous year.

“Government has constituted a One-Man Committee headed by Prabhat Kumar for framing a policy for development of MSME’s in the country,” said Giriraj Singh, Minister of State (MoS) for Ministry of MSMEs in a written response to a question in the Lok Sabha.

The question whether the government proposes to frame a new policy for the development of the MSME sector in the country was put forth by Vishnu Dayal Ram, BJP MP in the Lok Sabha.