New Delhi: MSME This sector is in need of the most policy attention, and the government will continue to do whatever is necessary to promote this sector, Niti Aayog Vice President Rajiv Youth said on Friday.
Speaking at a virtual event organized by the Institute for Studies in Industrial Development (ISID), Kumar said that the government and reserve Bank of India (RBI) has announced several measures to help the Micro, Small and Medium Enterprises (MSME) sector.
He said, “The MSME sector needs the highest policy attention from all the stakeholders… Much has been written about the MSME sector, but some of the challenges of the sector have not been met till recently.”
Kumar said the income of MSMEs has declined by 50 per cent, and one in three such firms faced a fall in revenue and profit during the pandemic. “We will continue to do whatever is required to boost the MSME sector.”
Listing out several measures announced by the government to help the MSME sector, he said Rs 2.73 lakh crore has been sanctioned under the Emergency Credit Line Guarantee Scheme (ECLGS).
risk capital requirements for MSME has been taken care of,” he said.
Kumar said that with the change in the definition of MSMEs and labor reforms announced by the government, India’s small and medium companies can now become a part of the global supply chain.
He said that 49.8 percent of India’s exports come from the MSME sector. Kumar said that even today 99 per cent of the total 63 million MSMEs are ‘micro’ and only 1 per cent units are in the category of ‘small’ and ‘medium’ enterprises.
He also stressed on the need to increase spending on research and development (R&D), which currently stands at less than one per cent of GDP.
Kumar also said that the time has come to leverage digital technology to switch from inventory- and asset-based lending to cash flow-based fintech lending to meet liquidity requirements.
Speaking at a virtual event organized by the Institute for Studies in Industrial Development (ISID), Kumar said that the government and reserve Bank of India (RBI) has announced several measures to help the Micro, Small and Medium Enterprises (MSME) sector.
He said, “The MSME sector needs the highest policy attention from all the stakeholders… Much has been written about the MSME sector, but some of the challenges of the sector have not been met till recently.”
Kumar said the income of MSMEs has declined by 50 per cent, and one in three such firms faced a fall in revenue and profit during the pandemic. “We will continue to do whatever is required to boost the MSME sector.”
Listing out several measures announced by the government to help the MSME sector, he said Rs 2.73 lakh crore has been sanctioned under the Emergency Credit Line Guarantee Scheme (ECLGS).
risk capital requirements for MSME has been taken care of,” he said.
Kumar said that with the change in the definition of MSMEs and labor reforms announced by the government, India’s small and medium companies can now become a part of the global supply chain.
He said that 49.8 percent of India’s exports come from the MSME sector. Kumar said that even today 99 per cent of the total 63 million MSMEs are ‘micro’ and only 1 per cent units are in the category of ‘small’ and ‘medium’ enterprises.
He also stressed on the need to increase spending on research and development (R&D), which currently stands at less than one per cent of GDP.
Kumar also said that the time has come to leverage digital technology to switch from inventory- and asset-based lending to cash flow-based fintech lending to meet liquidity requirements.
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