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MSMEs play pivotal role in country’s development: Virbhadra Singh

“MSMEs have been recognized as engine of growth. In India, too, MSMEs have played a pivotal role in the development of the country. MSMEs provide huge employment potential at a low capital cost. The sector faces many difficulties in its quest for growth. These relate mainly to access to capital, technology, marketing, infrastructure, availability of critical information and simplified system and procedures”, said Virbhadra Singh, union minister for micro, small and medium enterprises. Addressing a seminar on ‘Building A Competitive MSME Segment: Problems and Prospects’ he informed, “To address the concerns of MSMEs, the report of the special task force has been sent to all concerned, including state governments, for implementation of the recommendations in a time-bound manner”.
 
The Minister further said that to ensure better credit flow to MSMEs by minimising the risk perception of banks and financial institutions in lending without collateral security, the Government is implementing the Credit Guarantee Scheme. “The scheme provides guarantee cover of up to 85 per cent on collateral-free credit facility extended by lending institutions to new and existing MSMEs for loan up to Rs. 100 lakh and more than 5.1 lakh proposals have been approved under the scheme so far”, he added.
 
The Minister also called for attention towards medium-scale enterprises and said that these enterprises also need promotional schemes and an enabling environment like the small‑scale industries to further augment the overall economic growth.
 
The Minister also said that the government has initiated 10 innovative schemes under the National Manufacturing Competitiveness Programme to assist MSMEs in improving their processes, design, technology and market access. Along with this it is also implementing the Credit Linked Capital Subsidy Scheme for assisting MSEMs in upgrading their technology.
 
“There is a need to equip the youth with skills for giving them access to employment. Marketing is one of the important factors in the long-term sustainability of this sector,” the Minister said. He urged the MSME associations to come forward and collaborate with the Ministry in the implementation of various government schemes successfully across the country.
 
Earlier, Salil Bhandari, President, PHD Chamber, said that the government should think of special economic zones for MSMEs to make the sector vibrant and contribute to economic growth. He also added that venture capital should be made available to the businesses at the embryonic stage.
 
SK Sarkar, Chairman, Task Force on MSME, PHD Chamber, said e-procurement should be encouraged and states need to have a favourable regulatory environment.

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