Launching the MSME support programme, PM Modi said his government has finalised 12 policies to boost the sector. Calling it a "Diwali gift", the prime minister said these policies would enhance credit access to micro, small and medium businesses. The move will give a boost to the micro, small and medium enterprises sector and help generate employment.
PM Modi also stated that, "12 new historical decisions have been taken for the small industries which are like a Diwali gift for the sector." The 59-minute loan facility is one of the key decisions.
He further said that "India has become an economic powerhouse due to the MSME sector."
The outreach programme will run for 100 days covering 100 districts throughout the country.
The MSME sector constitutes a vast network of over 63 million units and employs 111 million people, contributing around 30 per cent to the GDP. It accounts for about 45 per cent of manufacturing output and around 40 per cent to total exports.
A major obstacle for growth of MSMEs is their inability to access timely and adequate finance as most of them are in niche segments where credit appraisal is a major challenge.
As per the RBI's Mint Street Memo report, note ban imposed in November 2016 has led to further decline in the already falling credit to the MSME sector, while GST roll out has not made any significant positive impact on overall credit to the sector but has deeply dented their exports.
About 97 per cent of MSMEs operate in the informal sector.
(With PTI inputs)
from Times of India https://ift.tt/2OqDygU
