Ministers Narayan Rane, Nirmala Sitharaman talk about budget enhancement for MSMEs, flagship schemes
MSME Minister Narayan Tatu Rane today met Finance Minister Nirmala Sitharaman to discuss MSME budget enhancement and flagship schemes. He also raised the issue of credit requirements of COVID-hit MSME units.
Union Minister for MSMEs Narayan Tatu Rane today met the Union Finance Minister Nirmala Sitharaman and held discussions regarding the enhancement of the budget, and continuation of flagship schemes of the Ministry of MSME.
Rane raised the issue of credit requirements of COVID-hit MSME units and highlighted the need for credible policy for attracting the foreign investment exiting China to enhance the manufacturing capacity of the MSMEs.
He also shared with FM Sitharaman the feedback of the MSME entrepreneurs regarding the apathy and indifference of the banks towards providing credit to MSMEs. According to reports, financial institutions have limited their exposure to the MSME sector because of the small ticket size of the loan, higher cost of servicing the segment, and limited ability to provide immovable collateral. CGTMSE, a scheme set up by the Ministry of MSME and Government of India, plays an important role by providing credit guarantees to MSMEs in India since its inception in 2000. However, due to many bottlenecks, this sector is not getting timely and adequate credit.
The finance minister assured her support to enhance the budget of MSME for the growth of the sector. She informed that banks will be asked to be sensitive to the needs of MSMEs and district level interactions will be held between the bankers and the MSME borrowers.
In Budget 2021, FM Sitharaman had allocated Rs 15,700 crore to the MSME sector, besides laying a special framework of Data Analytics, Machine Learning (ML), and Artificial Intelligence (AI) to assist the sector. Further, to boost digital transactions, FM Sitharaman earmarked Rs 1,500 crore for a proposed scheme to provide financial incentives to promote digital modes of payment among MSMEs. She had also announced a slew of changes in customs duties in a bid to boost local manufacturing.
Rane expressed hope that with the support of the Finance Minister, the MSME sector will spearhead the economic recovery post-pandemic.
Edited by Kanishk Singh
