Bengal records highest bank credit flow to MSME sector for last 5 years

Bengal recorded the highest bank credit flow to Micro, Small and Medium Enterprises (MSME) sector for last five years across the nation to the tune of US $15 billion. Aiming to showcase its booming MSME sector among the global investors, the government is ready with such statistics and figure for forthcoming Bengal Global Business Summit (BGBS). The third edition of BGBS is scheduled on January 20-21.

Apart from highest MSME credit flow to the tune of US $ 15 billion, the state is second largest in the country in terms of the number of MSME enterprises. There are 3.7 million enterprises doing business in Bengal.

The involvement of people in Bengal’s MSME sector is also heart-warming thing to promote among the Indian and overseas investors. The state is the second largest in the country in terms of number of people employed in MSMEs, which is 8.6 million.

Bengal has a steady 8 per cent growth rate in MSMEs in 2014-15 and it has 19 per cent MSME’s share of state’s Gross Value Added (GVA) in 2014-15.

However, the state government has set up a US $ 30 million or approximately Rs 200 Crore Venture Capital Fund (VCF) to ensure a fast MSME growth.

The government also set up MSME Felicitation Centre (MFCs) in every district to provide single window services to the entrepreneurs.

‘Mricro Business Credit Card’ scheme was already launched by the government to help out MSME entrepreneurs in the state. A fund was created in association with State Bank of India (SBI) which is around US$ 30 million.

“We’ve set up a portal – ‘myEnterpriseweb’ to serve promptly to those people who wish to open MSME units in the state,” said a senior state government officer.

Chief minister Mamata Banerjee led the success story of MSME in Bengal. The government created 331 new MSME clusters. The market value of the fixed asset in MSME in Bengal is US $ 5.9 billion – which is considered to be her single-handed achievement.

Economist Abhirup Sarkar feels that this is a commendable achievement. “Bank credit flow to MSME is highest in Bengal, which implies the growth story. The big industry needs big investment. But those big ticket investments are often mechanised. The scope of employment generation is not so high there. But the opportunity of job generation is high in MSME sector,” Sarkar said, talking to the Millennium Post.

Port, mining and MSME will be the thrust areas at the BGBS 2017. The state government recently framed its Maritime Policy with the help of global analytical company CRISIL. Moreover, the government has also opened the door to widen ‘post-based industrialisation’ to add a sharp edge in Bengal’s trade scenario.

‘Advantage Bengal’ will be promoted at different sessions including the ‘inaugural plenary session’, multi-country interactions and B2B meetings.