Govt will remove barriers in credit flow to MSMEs, says Minister

Emphasising the MSME sector's important role in making India a $5 trillion economy, Union Minister Bhanu Pratap Singh Verma on Tuesday said the government will remove all the barriers in credit flow to this sector.

The Minister of State in Ministry of Micro, Small and Medium Enterprises also said the government was committed to developing a better system of redressal and debt facilities.

Verma was addressing a session, Making Indian MSMEs Globally Competitive through Trade, Finance & Investment Facilitation, on the second day of Uttar Pradesh MSME Convention 2022. It was organised by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) in association with the central government and the MSME ministry.

The theme of this session was making MSMEs globally competitive through trade, finance, and better investment facilities.

The minister said the MSME sector is being developed as a new engine of growth in the country, modernised through innovation, and will be more competitive.

Verma said the export business from the MSME sector is continuously increasing, with its contribution to the country's exports now touching almost 50 percent.

"It also accounts for about 30 per cent of the country's GDP. In such a situation, the role of our MSME sector becomes important in strengthening India's position in global trade," he said.

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The industry has to move with time and must focus on adopting new-age technologies, including digitising systems, processes, and operations in all aspects of the business to save time and expenses, he said.

In his address at the session, Ravi Gupta, Co-Chairman of Assocham National Council on WTO Trade and Investment, asked MSMEs to keep their products eco-friendly and clean. He added that small-scale industries of the state can play an important role in the economic development of the country.

Since Uttar Pradesh is renowned for its leather, carpets, handicrafts, milk, and milk products, which are produced on a large scale, the state can play an important role in making MSMEs self-reliant, Gupta said.