New Delhi: The MSME sector requires most of the policy attention, and the government will continue to carry out anything needed to promote this sector, said Deputy Chairperson of Niti Aayog Rajiv Kumar, said on Friday.
Speaking on a virtual event organized by the Institute of Studies in Industrial Development (ISID), Kumar said the government and reserves of Bank of India (RBI) have announced a few steps to help the micro, small and medium sector (MSMEs).
“The MSME sector requires most of the policy attention of all stakeholders …
Many have been written about the MSME sector but some of the challenges of this sector have not been fulfilled until now,” he said.
Kumar said MSME revenue was hit by 50 percent, and one of the three companies suffered a decrease in income and profit during a pandemic.
“We will continue to do whatever is needed to promote the MSME sector.” Registered several steps announced by the Government to help the MSME sector, he said that under the Emergency Credit Line Guarantee Scheme (ECLGS), Rs 2.73 Lakh Crore was subject to sanctions.
“Requirements for risk capital for MSMEs have been taken care of,” he said.
Kumar said that with changes in the definition of MSMEs and labor reforms announced by the government, Indian small and medium enterprises can now be part of the global supply chain.
He said 49.8 percent of Indian exports came from the MSME sector.
Even today, 99 percent of the total 63 million MSMEs are ‘micro’ and only 1 percent of the entity are in the range of ‘small’ and ‘medium’ companies, added Kumar.
He also emphasized the need for increased expenditure for research and development (R & D), which is currently under one percent of gross domestic product.
Kumar also said time had come to utilize digital technology to switch from inventory loans and assets based on Fintech loans based on cash flow to meet liquidity requirements.