SME Times News Bureau | 23 May, 2019
The new
government needs to focus on the small and medium enterprises (SMEs) to
generate employment, said a new report.
For
private sector employment generation, the government needs to focus on the SME
segment as well as start-ups so as to increase the opportunities, the care
report said.
In line
with opinion widely expressed by economists, the report that the economy
requires direct intervention by the next government in areas such as
agriculture, employment and the banking sector.
The
report also stressed on focussing on the manufacturing sector.
The government must look internally and fill all vacancies that have been on
hold.
"But we need to ensure that core manufacturing takes place and not just
assembly of components," the report said.
On agriculture the report in order to reduce reliance on monsoon for
agriculture production, the impending ambitious project of inter-linking Indian
rivers should be pushed as it can be a long-term solution for the
agriculture-related issues.
On the banking sector, the report flagged that the sector is going through
challenges of capital and asset quality. "The banks continue to be
affected by the delays in the NCLT resolution process. Hence a review of the
NCLT procedure with the view of speeding up the process, seems necessary.
"The IBC may need some amendments as the rate of resolution of bankrupt
companies can be improved," the report said.
The report said the government has been the main driver of capex in the last
2-3 years and the steady pace of investment should continue.
"The focus must now be on reinvigorating private investment and here it
would be necessary to review the clogs that are in the way of investment,"
it added.