The Micro, Small and Medium Enterprises (MSMEs) which forms an integral part for the development of India's economy has witnessed a better allotment of funds during today's Union Budget 2019 session. The new Finance Minister - Nirmala Sitharaman, has proposed Rs 350 Crore to be allocated for 2% interest subvention for all GST - registered MSMEs on fresh and incremental loans.

As a part of the current governments focus on bringing MSMEs under the formal economy's fold, a payment platform for the MSMEs will be set up. She has also proposed to invest heavily in the infrastructure and job creation in the MSMEs.

The government of India is planning to start an e-commerce platform on the lines of global players - Alibaba and Amazon to sell the products manufactured by the MSMEs as the ministry of MSME are in the process of launching an online platform to popularize and give the market easy access to products manufactured under this sector.

This particular sector is a big driver of India's manufacturing part and plays a vital role in the creation of jobs. The growth of the MSMEs sector holds the potential to bump up India's economy which is currently fragile and will help to add up more formal jobs which are the immediate need of the hour to tackle unemployment issue.

The government plans to open a payment portal specially for MSMEs as an investment in this sector will receive a big boost through the portal if the delays in payments to SMEs and MSMEs are eliminated. Added to this, the loan of Rs 1 crore for MSMEs will be cleared within 59 minutes through an online portal.

As of now, there are nearly 63.38 million unincorporated non-farm MSMEs in India which is engaged in different economic activities, which includes 23 million in trade activities and 19.66 million in manufacturing activities as per the report from the MSME industry. The MSMEs sector employs more than 49.77 million people.