June 29, 2022
1 min read

Centre promises smooth credit flow for MSMEs

The minister further said that the MSME sector was being developed as a new engine of growth in the country. It is being modernized through innovation and will be more competitive….reports Asian Lite News

Union Minister of State for MSME, Bhanu Pratap Singh Verma on Tuesday said that the government will remove all the barriers to credit flow in this sector.

He said that the government was also committed to develop a better system of redressal and debt facilities.

The minister was addressing a MSME Convention organised by Associated Chambers of Commerce and Industry of India (ASSOCHAM) in association with the Ministry of MSME, when he emphasized the important role of the Micro, Small and Medium Enterprises (MSME) sector in making India a $5-trillion economy.

The theme of this session focused on making MSMEs globally competitive through trade, finance and better investment facilities.

The minister further said that the MSME sector was being developed as a new engine of growth in the country. It is being modernized through innovation and will be more competitive.

He added when the industry faced a crisis in terms of business, the government made many provisions for this sector.

For instance, under the Emergency Credit Facility Guarantee Scheme (ECLGS), a provision of loan facility up to Rs 5 lakh crore has been made, whereas Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides an additional credit of two lakh crore rupees.

He informed that the export business from the MSME sector was continuously increasing with the contribution in the country’s exports now touching almost 50 per cent.

It also accounts for about 30 per cent of the country’s GDP. In such a situation, the role of MSME sector becomes important in strengthening India’s position in global trade.

He further said that the industry has to move with the times and must focus on adopting new-age technology, which also includes digitizing systems, processes and operations in all aspects of the business to save time and expenses. This will result in quality goods and businesses functioning without interruption, which will create new employment opportunities.

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