WHAT IS RAMP?

 RAMP stands for "Raising and Accelerating MSME Performance" .It is in line with the recommendations made by U K Sinha Committee, K V Kamath committee and Economic Advisory Council to the Prime Minister (PMEAC). The Reserve Bank of India had constituted an 'Expert Committee on Micro, Small and Medium Enterprises' under the chairmanship of shri U K Sinha in 2019 to suggest long term measures for the economic and financial sustainability of the MSME sector. The scheme was announced by the finance minister in the Union Budget 2022-2023.

About

It was a World Bank assisted Central Sector Scheme, supporting various Corona Virus Disease 2019 (Covid) Resilience and Recovery Interventions of the Ministry of Micro, Small and Medium Enterprises.

Aimed at

• Improving access to market and credit.
• Strengthening institutions and governance at the centre and state.
• Improving Centre-State linkages and partnerships.
• Addressing issues of delayed payments and greening of MSMEs.

Components

• Important component of RAMP is preparation of strategic investment plans (SIPs) , in which all states/UTs will be invited.
• The SIPs would include an outreach plan for identification and mobilization of MSMEs under RAMP , identify key constrains and gaps , set milestones and project the required budget for interventions in priority sectors including renewable energy , rural and non -farm business , wholesale and retail trade , village and cottage industries , women enterprises etc.
• The overall monitoring and policy overview of RAMP would be done by apex National MSME council.
• The council will be headed by the minister of MSME , including representation from various ministries and supported by a secretariat.
• Funding; The total outlay for the scheme is Rs.6,062.45 crore out of which Rs.3750 crore would be a loan from the World Bank and the remaining Rs.2312.45 crore will be funded by India.
• Implementation Strategy: Funds would flow through RAMP into Ministry's budget against Disbursement Linked Indicators (DILs) to support ongoing MoMSME  programmes, focusing on improving market access and competitiveness.
• The disbursement of funds from Worlds Bank towards RAMP would be made on fulfilling the following Disbursement Linked Indicators;

1. Implementing the National MSME Reform Agenda.
2. Accelerating MSME sector Centre-State collaboration.
3. Enhancing effectiveness of Technology Upgradation Scheme(CLCS-TUS).
4. Strengthening Receivable Finance Market for MSMEs.
5. Enhancing Effectiveness of credit guarantee trust for Micro and Small enterprises (CGTMSME) and "Greening and Gender " delivery.
6. Reducing the incidence of delayed payments.

Benefits

• Employment generation.
• Usher in larger Formalization.
• Complement the Atmanirbhar Bharat Mission.
• Significance of MSME in Indian Economy: Act as Growth Accelerators, Contribute about 48% of the overall exports, Connection with rural economy.