Budget 2010: Govt raises allocation for MSME at Rs 2400 cr for 2010-11

19 Mar 2010, 1610 hrs IST,
Source:PTI



NEW DELHI: The government  proposed to

increase allocation for the Micro, Small and Medium Enterprises

(MSMEs) sector by over Rs 600 crore
to Rs 2,400 crore for 2010-11.

MSMEs, which employs about 60 million people and contributes
about 40 per cent to India's overall exports,
were badly hit by the global slump in demand.

"I propose to raise the allocation for this sector
from Rs 1,794 crore to Rs 2,400 crore for the
year 2010-11, Finance Minister Pranab Mukherjee
said while presenting Budget 2010-11.

The MSME Ministry had sought Rs 5,000-Rs 5,500 crore
over the next three years to implement the recommendations of the task force.

There are 26 million MSMEs in the country, contributing
about 45 per cent to India's total manufactured output.