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MSMEs have ability to adapt fast to market change

Goyal discusses MSME issues

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Goyal discusses MSME issues

 

ASSOCHAM.

 

The Micro Small and Medium Enterprises (MSME) sector has better adaptability to cater to the export market due to its smaller size and ability to adapt fast to market change, said Commerce and Industry Minister, Piyush Goyal.

He urged manufacturers in the sector to produce high quality goods following international standards to make their exports a part of the global value chain.

Goyal has also directed Small Industries Development Bank of India (SIDBI) and the Credit Guarantee Funds Trust for Micro and Small Enterprises (CGTMSE) to set up a that will enable them to process loans to MSME units faster.

He also called on SIDMBI and CGTMSE to provide insurance cover to the sector’s exporters.

Goyal discussed with MSME associations various industry issues and examine the steps that may be taken to resolve them during a meeting in New Delhi on 6 Jan 2020.

Among the issues that were discussed in the meeting included the problem faced by SME units in accessing credit from banks, delay in payments from Public Sector Units and Government departments, the issue of GST refund, the dearth of skilled manpower in the SME sector and the issue of differing wages in States across the country.

The MSME sector discussion was held with participation from the Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce and Industry (FICCI), the Associated Chambers of Commerce and Industry of India (ASSOCHAM), SME Chamber of India and PHD Chamber of Commerce and Industry.

On the issue of delayed payments, Commerce and Industry Minister examined the possibility of big companies making full payment to SMEs against delivery so that working capital of SME units are not blocked.

The Minister assured Government’s support and help in the skilling of manpower required for the sector and in all other areas that requires intervention of the Commerce and Industry Ministry.

In order to mainstream the 8 million Indian women who have started and are running their own businesses Minister directed that the Government e-Marketplace may handhold the women led SMEs and onboard these enterprises on the GeM portal.

The MSME sector in India employs over 100 million people and accounts for 45% of manufacturing output and more than 40% of the country’s exports.

With 63.4 million units throughout the country, MSMEs contribute around 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities. fiinews.com

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