Govt to set up microfinance institution to support micro-entrepreneurs: MSME Minister
New Delhi, July 27 (KNN) Union Minister of Micro, Small and Medium Enterprises (MSME) Nitin Gadkari on Monday said there is a need to set-up a microfinance institution to provide capital support to micro-entrepreneurs and self-employed.
Addressing members of North Indian Chartered Accountant (NICA), Gadkari said, ''Making microfinance available in India is a big requirement that will generate employment and growth.”
The Minister said that the discussions are underway with Niti Aayog and IITs on this to offer loans up to Rs 10 lakh to entrepreneurs.
Gadkari further suggested having a chartered accountant in every city who will act as an auditor-cum-accountant to regulate or check the annual performance of enterprises and provide grades.
“There are 115 aspirational districts that are socially, economically, and educationally backward where we should create self-employment. This is the biggest challenge in making India Atmanirbhar,” he added.
The Minister also said that 14-16 per cent GDP contribution is from agriculture and allied activities, 22-24 per cent comes from the manufacturing sector and 52-54 is from the service sector but population depending on agriculture is 65-70 per cent representing rural India.
''Hence, unless per capita income, GDP and employment potential won’t increase in rural India, the average income and growth will not go up,” he avowed.