Easy, cheaper finance options for MSMEs discussed at CII meet

A conference on Financing for Growth with special focus on sustainable development of Micro, Small and Medium Enterprises (MSMEs) was organised by the Confederation of Indian Industry at its Headquarters here in Chandigarh today.

While addressing the conference, Achal Kumar Gupta, Managing Director, State Bank of Patiala (SboP), said, "A strengthened and revitalised MSME sector can play a pivotal role in bolstering the Indian economy".

Highlighting the significance of the MSME sector in nation building, Gupta further shared that the widely dispersed MSME sector contributes to 45 percent of India's total manufactured output, 40 percent of India's exports, nine percent of India's GDP, provides employment on a large scale even in rural areas and helps in developing entrepreneurs as well.

"Banks, Financial Institutions (FIs) and Non Banking Financial Corporations (NBFCs) should come forward and take responsibility to help in the growth of MSMEs with easy and cheap credit schemes soon," he added, while announcing that SBoP has slashed rates of interest on credit to MSMEs in the food processing sector by 2 per cent, which mainly includes rice shellers and cotton ginners.

Raman Saluja, Chairman, Regional Committee on MSMEs, CII Northern Region, said, "The MSME sector, which is at the bottom of the pyramid of the Indian economy, needs to be nurtured and supported with favourable policies of the government and the regulatory bodies, backed by sound infrastructure and transportation facilities, easy and cheap credit and awareness about latest processes and technologies in order to help it revitalise and sustain itself".

He added that if the provision of payment within 45 days of sale of the MSMED Act is implemented, a lot of woes of the MSMEs due to lack of credit would be solved because the money they get from sales within 45 days would then be easily recycled to meet their requirements time and again.

... contd.

ALSO READ

UBS proposes independent campus, SBI chairman donates Rs 1 cr to alma mater

Following altercation, UBS woman prof slaps sexual harassment case against 2 colleagues

Life of Pi singer Bombay Jayashri to perform in Chandigarh

Theories of Sino-India war far-fetched, says ex-Army chief