Gadkari’s boost for MSMEs
The Ministry of Micro, Small and Medium Enterprises is in talks with ADB, KfW and World Bank for their credit line as a cheaper capital for the MSMEs, boosting their contribution in the Gross Domestic Product.
Sharing this, MSME Minister Nitin Gadkari said the Government also aims to increase MSME’s present share of 29% of GDP to 50% in next five years and raise its export contribution from 49% to 60%.
The problem of delayed payments to MSMEs is also being looked into, assured Gadkari at the inauguration of 16th Global SME Business Summit 2019 in New Delhi on 24 Sept 2019.
Reducing the cost of capital, logistics and power are crucial for making the Indian MSME sector globally competitive, he stressed.
The Summit is organized every year by Ministry of MSME and Confederation of Indian Industries (CII) on a theme “Making Indian MSMEs Globally Competitive”.
Gadkari called for domestic and foreign investment and collaboration in the sector, pointing out the potential of MSME to push growth and generate employment.
He said the government’s priority is for an integrated development of the rural and agro based enterprises along with the urban based enterprises.
Opportunities abound in development of honey, bamboo, textiles, biofuels, water transport, fisheries, dairy, food processing in the rural areas and ancillary units of defence, railways, highways, waterways and other industries in the urban areas, he listed out.
The Minister appealed to investors to come forward for investment and collaboration.
For lowering cost of power and logistics, the Minister pointed to the necessity of energy audits and energy efficient technologies.
He said roof top solar plants will be provided to MSMEs with KfW support. He also said that the use of water transport can reduce logistic cost.
Gadkari disclosed that the Ministry will soon launch a new E-Commerce website ‘Bharat Mart’ to enable MSMEs to sell their products in local as well as international markets.
MSME Secretary Dr. Arun Kumar Panda informed that the Ministry is in the process of developing a digital MSME portal which will work as a virtual meeting place for all stakeholders of the sector.
For the over 75 lakh MSMEs currently registered with the Ministry, this will provide a platform where they can interact globally to fulfil their requirements for funding, knowledge, technology, skilling and marketing, making them more competitive and integrated with the global value chain.
He also emphasized on the need to enhance manufacturing competitiveness of entrepreneurs, saying that the Ministry is in the process of opening 135 new Tool Rooms & Technology centres to develop the skill of the entrepreneurs.
The two-day summit was attended by more than 500 delegates from more than 15 countries. Country sessions with South Korea and Saudi Arabia along with panel discussion on ‘Can MSME’s Contribute 50% to Indian GDP’.
Gadkari also released the theme paper of the Summit ‘Making Indian SMEs Globally Competitive. fiinews.com
