Millennium Post

Slew of measures announced to get MSME back on track

To bring Micro, Small and Medium Enterprises sector (MSME) back on the track, finance minister Arun Jaitley has announced that a committee comprising of members from the Finance Ministry, Ministry of MSME and Reserve Bank of India will be formed to give concrete suggestions in three months to revive this sector, which is considered as the backbone of Indian economy.
 ‘There is a need to examine the financial architecture for this sector because this sector accounts for a large portion of our industrial output and employment. The bulk of service sector enterprises are also SMEs. Most of these SMEs are Own Account Enterprises. Most importantly a majority of these enterprises are owned or run by SCs, STs and OBCs. Financing to this sector is of critical importance, particularly as it benefits the weakest sections,’ Arun Jaitley said.

In order to create a conducive eco-system for the venture capital in the MSME sector the budget has proposed to establish a Rs 10,000 crore fund to act as a catalyst to attract private capital by way of providing equity, quasi equity, soft loans and other risk capital for start-up companies.
While claiming that promotion of entrepreneurship and start-up companies remains a challenge, he said, ‘We are making some efforts to encourage the promoters of MSME. Therefore, we have decided to establish technology centre network to promote innovation, entrepreneurship and agro-industry. For this, I would like to set up a fund with a corpus of Rs 200 crore.’ He said, ‘In coming years, we have decided to review the MSME to provide a higher capital ceiling. We are committed to chalk out a programme to facilitate forward and backward linkages with multiple value chain of manufacturing and service delivery.’
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