Govt to launch digital data-based credit ratings for MSMEs: Gadkari
Union Minister Nitin Gadkari emphasised on building credibility by MSMEs by timely payment of loans, and pitched for setting up more small scale businesses in rural areas.
The government is in the process of launching 'digital data-based credit ratings' of the micro, small and medium enterprises (MSMEs) to help entrepreneurs get bank loans on the basis of these credit ratings, Union Minister Nitin Gadkari said while speaking at a conference on 'Opportunities for MSME in Agriculture & Food processing' at Agrovision.
Gadkari emphasised on building credibility by MSMEs by timely payment of loans and pitched for setting up more small scale businesses in rural areas. The Minister assured all support from the MSME ministry.
Timely payment of taxes and loans will ensure good credit ratings and the concerned MSME will get digital data-based credit ratings, he said.
The MSME sector, which is facing a liquidity shortage, has contributed 49 percent of India's total exports.
The Minister also informed about starting a permanent institute in Vidarbha in Maharashtra, which will give guidance and training to the farmers throughout the year under Agrovision Foundation.
Gadkari said that UPL Chairman Rajju Shroff has assured an equal amount of funds by the foundation for the institute.
Addressing the International Women's Entrepreneurial Challenge Foundation earlier this month, Gadkari also said that the government is using technology and innovations to boost agricultural and tribal sectors.
He gave examples of honey and oranges being used in various products, which has resulted in the increased production and market value of these products.
The government is working on backward integration to develop rural industry and create employment, he said, adding that the employment potential is 11 crore. At the same time, innovations and skill development in the MSME industry are being carried with the collaboration of the German government to make Indian products more competitive in the international market, he said.
He emphasised that the international companies should look at India for setting up their manufacturing base as it will reduce their manufacturing cost by 25-40 percent while ensuring quality.
(Additional information has been added to this PTI copy for context)
(Edited by Evelyn Ratnakumar)