Reducing cost of capital, logistics, and power key to making MSMEs globally competitive: Nitin Gadkari
Speaking at the 16th Global SME Business Summit 2019, MSME Minister Nitin Gadkari also called for domestic and foreign investment, and collaboration in the sector.
Inaugurating the 16th Global SME Business Summit 2019 in New Delhi, Union Minister for Micro, Small and Medium Enterprises and Road Transport and Highways Nitin Gadkari said reducing the cost of capital, logistics, and power was crucial for making the Indian MSME sector globally competitive.
According to a government press release, Gadkari also called for domestic and foreign investment and collaboration in the sector, and added that the MSME sector in India had tremendous potential to push growth and generate employment.
The minister said:
"The government’s priority is for an integrated development of the rural and agro-based enterprises along with the urban based enterprises. Opportunities are abound in development of honey, bamboo, textiles, bio-fuels, 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."
Gadkari then re-emphasised the government's mission to raise the contribution of MSME sector to the country's GDP to 50 percent from the present 29 percent, and ensures that it give employment to at least 15 crore people against the 11.1 crore at present.
Gadkari also said at the event that he aimed to raise MSMEs' export contribution from 49 percent to 60 percent.
To source cheaper capital, Gadkari confirmed that the ministry is in talks with ADB, KfW, and World Bank for their credit line. It was reported in July 2019 that nearly $14.5 billion in credit for millions of Indian MSMEs is being sourced by the government from these foreign lenders.
Gadkari also said 200 SMEs are registered on the stock exchange, and urged more companies to register. The problem of delayed payments to MSMEs is also being looked into, and he added that the UK Sinha Committee Report will soon be implemented.
To lower cost of power and logistics, he pointed to the necessity of energy audits and energy-efficient technologies. He said rooftop solar plants will be provided to MSMEs with KfW support.
Long-term roadmap
This announcement comes one day after Gadkari and RK Singh, Union Minister of State for Power and New and Renewable Energy, came together to inaugurate an exhibition of energy-efficient technologies for the MSME sector and also signed an MoU for developing a long-term roadmap to enhance energy efficiency and security for MSMEs through focused intervention.
Gadkari also said that the use of water transport can reduce the cost of logistics, after which Arun Kumar Panda, Secretary, MSME, said 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 over 75 lakh MSMEs currently registered with the ministry, this will provide a platform where they can interact globally to fulfill their requirements for funding, knowledge, technology, skilling and marketing, making them more competitive and integrated with the global value chain, according to him.
(Source: Press Information Bureau, Government of India)
(Edited by Teja Lele Desai)