Bikky Khosla | 01 Jul, 2019
Micro, Small and Medium Enterprises (MSMEs) are the backbone
of the Indian economy …. This sector is key to addressing the lingering job crisis
in the country. This is what we often hear in speeches. There is no doubt that
the sector is of utmost importance to the economy and the government has taken steps
after steps to promote the sector in the past few years. But unfortunately the challenge
is so big that the sector still lacks adequate support.
Last week, on occasion of the MSME
Day 2019, the MSME minister said the government is committed to raise the
contribution of the sector to GDP to 50 percent from the present 29 percent.
Also, he added, the Centre would ensure that employment generation by the
sector increases to at least 15 crore people against the 11.1 crore at present.
The minister also emphasized on the urgent need to encourage research
and innovation in the sector, collaborate with global entities to bring in the
latest technology and best practices and also promote marketing.
In a similar tone, the Finance
Minister last week said that the RBI and the
Government have taken several steps time to time to ensure credit flow to the
sector. She mentioned about measures like advice to all Scheduled Commercial
Banks (SCBs) to achieve a 20% year-on-year growth in credit to MSEs and
allocation of 60% of the MSEs advances to the Micro Enterprise Accounts. And on
another occasion, the Centre said that all public sector banks were requested
that a CGM/GM level officer may be specifically designated to do an in-depth
analysis of the MSME credit issue.
While such comments are inspiring, I hope the
government, in the upcoming Budget, will leave no stone unturned to address the
lingering worries of the MSME sector. Our MSMEs, including those engaged in
exports, are still facing a lot of issues which need to be addressed in a
comprehensive manner if Indian economy is to perform well consistently in the
coming years. Of course, the government has no magic wand to solve all the
issues in one go, but steadily it must move towards strengthening the
I invite your opinions.