New initiatives for MSME sector soon: Patil

New Delhi, Feb 21 (PTI) Based on the recommendations of ahigh-level panel, the government will soon unveil newinitiatives to give a push to the country''s small and mediumsector employing over 6 crore people.

"New initiatives will be launched shortly based on thereport of the Task Force on Micro, Small and MediumEnterprises (MSMEs)," President Pratibha Patil said in heraddress to Parliament marking the beginning of the BudgetSession.

The task force on the MSME sector headed by T K A Nair,Principal Secretary to Prime Minister Manmohan Singh, hadsubmitted its report containing several recommendations lastmonth.

The suggestions covered areas like easy and affordablecredit, government procurement from MSMEs and simplificationof labour laws. The task force also suggested setting up of aexchange for the SMEs.

Besides, it had suggested measures for growth of thesector in Jammu and Kashmir and North Eastern region in thecountry.

The MSME sector contributes 8 per cent of the country�sGDP, 45 per cent of the manufactured output and 40 per cent ofits exports.

On the Khadi sector employing over one crore people, thePresident said a comprehensive Khadi reform programme has beenlaunched.