The West Bengal government has set a target of providing Rs 1.53 trillion as bank loans to the Micro, Small, and Medium Enterprises (MSME) sector in the current fiscal year. This is a 5.5% increase compared to the amount provided in the previous year. In the fiscal year 2023-24, the MSME sector in West Bengal received Rs 1.45 trillion in bank credit, which represents a growth of 14% compared to the previous year.
West Bengal’s Position in the MSME Sector
West Bengal is one of the leading states in terms of MSME units, with 21.5% of the country’s total MSME units located in the state. This indicates the significant presence and contribution of MSMEs to the state’s economy. There are 89 lakh MSME units in West Bengal, providing employment to 1.36 crore people. Of these units, 29 lakh are owned by women entrepreneurs, which accounts for 32.7% of the total units in the state. This highlights the active participation of women in the MSME sector, contributing to both economic growth and gender empowerment.
MSME Clusters in West Bengal
The state of West Bengal has 589 MSME clusters, with 41.77% engaged in manufacturing, 25.47% in trading, and 21.5% in other sectors. These clusters serve as hubs for MSME activities, fostering collaboration and growth within specific industries.
Use of Bank Loans by MSMEs
The bank loans provided to MSMEs in West Bengal are primarily utilized as working capital and capital expenditure. This financial support enables the MSME units to expand their businesses, generate more employment opportunities, and contribute to the overall growth of the sector.
Expansion of Power Loom Units and Fabric Production
Over the past three years, around 1,400 power loom units have been established in West Bengal. These units play a crucial role in the production of fabric. Additionally, the state government is providing free uniforms to students in all government, government-aided, and government-sponsored schools. This initiative requires a total of 5 crore meters of fabric per year. Previously, the fabric requirement was met from outside the state, but now the power loom units in West Bengal supply fabric worth approximately Rs 500 crore per year, reducing dependence on external sources and promoting local economic development.