RAISING AND ACCELERATING MSME PERFORMANCE (RAMP)
1. Introduction
- The full form of RAMP is Raising and Accelerating MSME Performance. It is a World Bank-assisted central sector program to strengthen India's Micro Small and Medium Enterprises (MSME) sector.
- The program aims to improve access to market and credit, strengthen institutions and governance at the Centre and State, improve Centre-State linkages and partnerships, addressing issues of delayed payments and greening of MSMEs
- The initiative aims to improve market and credit access, develop institutions and governance at the centre and state levels, strengthen centre-state linkages and collaborations, manage late payments, and green MSMEs
- The funds would flow through RAMP into the Ministry’s budget against Disbursement Linked Indicators (DLIs) to support ongoing MoMSME programmes, focusing on improving market access and competitiveness
2. Objectives of the Programme
- Strengthening coordination and institutions at the National and State level.
- Enhancing guarantee products towards increased greening and gender participation.
- Strengthening the receivables financing markets.
- Building and integrating technology platforms.
- Expanding access to Online Dispute Resolution Mechanism (ODR).
- Enhancing firm capabilities and access to markets
3. Statistics
- The RAMP program was launched in 2020 and is expected to run for five years.
- The total cost of the program is estimated at Rs. 8,080 crore, with the World Bank providing a loan of Rs. 3,750 crore.
- The remaining amount will be funded by the Government of India
- The RAMP program is being implemented in 27 states and union territories of India. The program is expected to benefit around 10 million MSMEs.
- The RAMP program is a comprehensive program that aims to address the key challenges faced by MSMEs in India. The program is expected to play a significant role in the growth and development of the MSME sector in India.
4. Key Features
Here are some of the key features of the RAMP program:
- Improving access to market and credit: The RAMP program will provide financial assistance to MSMEs to help them access markets and credit. This will help MSMEs to expand their businesses and create more jobs.
- Strengthening institutions and governance: The RAMP program will strengthen institutions and governance at the Centre and State level. This will help to create a more conducive environment for MSMEs to operate in.
- Improving Centre-State linkages and partnerships: The RAMP program will improve Centre-State linkages and partnerships. This will help to ensure that MSMEs have access to the resources and support they need to grow their businesses.
- Addressing issues of delayed payments: The RAMP program will address the issue of delayed payments to MSMEs. This will help to improve the cash flow of MSMEs and make it easier for them to operate their businesses.
- Greening of MSMEs: The RAMP program will promote the greening of MSMEs. This will help MSMEs to reduce their environmental impact and become more sustainable.
5. Way forward
The RAMP program is a significant initiative by the Government of India to support the MSME sector. The program is expected to play a major role in the growth and development of the MSME sector in India
Source: indianexpress
