MSME Export Promotion Council hails support for sector

MSME Export Promotion Council hails govt resolve to support crisis-hit MSME sector

According to the Survey tabled in Parliament, 1,59,422 such loans have been sanctioned involving Rs 49,330 crore. Of this, Rs 37,106 crore has been disbursed up till October 2019

Chief Economic Adviser Krishnamurthy V Subramanian presents the Economic Survey 2019-20 during a press conference, in New Delhi, Friday, Jan. 31, 2020. (Credit: PTI Photo)

The MSME Export Promotion Council (MSME-EPC) on Friday hailed the Centre's commitment to extend support to the micro, small and medium enterprises which are facing "unprecedented crisis".

"Due to slackness in demand and non-availability of timely and affordable finances, many units are struggling for survival and some have already pulled down their shutters," MSME-EPC Chairman D S Rawat said.

Terming the MSME as an important segment of the economy that fosters entrepreneurship and generates employment opportunities at lower capital cost, he said the government's commitment to support the micro, small and medium enterprises (MSME) sector is a welcome step, "especially at a time when these units are facing unprecedented crisis".

Rawat's statement comes against the backdrop of Union Finance Minister Nirmala Sitharaman giving a detailed analysis in the Economic Survey 2019-20 of measures taken by the Centre to support the MSME sector to ensure better credit flow, technology up-gradation, ease of doing business and market access.

"There is an urgent need to revive village industries and artisans need to be supported which will help generate direct and indirect jobs. In addition, this will provide inclusive growth," Rawat said.

Prime Minister Narendra Modi had on November 2, 2018, announced reforms aimed at expediting growth of the sector including in-principle approval for loans up to Rs 1 crore within 59 minutes through an online portal.

Besides, out of the 25 per cent procurement mandated from MSMEs, 3 per cent is reserved for women entrepreneurs. During 2019-20, procurement has been done from 1,471 women-owned MSMEs to the tune of Rs 242.12 crore.