Action Committee formed to support small business finance, FM's agenda
Updated: Aug 09, 2014 01:21:57pm
New Delhi, Aug 9 (KNN) In a bid to develop a viable financial architecture for non-corporate small business in the country, prominent stakeholders in the Indian economy have forged an alliance under the banner of 'Action Committee for Formal Finance for Non-Corporate Small Business (ACFF)'.
The alliance ACFF launched a nationwide advocacy campaign yesterday to support the Government to achieve the declared policy of formation of a separate financial architecture for non-corporate Small Businesses, according to a press release.
“The Action Committee has been formed in the wake of the Union Finance Minister, Arun Jaitley’s announcement on this subject in his budget speech. Para 102 of the Finance Minister’s speech calls for the constitution of a special Committee of officials from Finance Ministry, MSME Ministry and RBI to develop a new financial architecture to support Small Business Finance,” it said.
The constituents of the Action Committee include the Confederation of All India Traders, All India Motor Transport Congress, All India Confederation of Goods Vehicles Owners Association, All India Transport Welfare Association, Federation of Indian Small & Micro Enterprises, National Hawkers Federation, Bhartiya Kisan Morcha and many other leading organisations of other different sectors.
It represents nearly 6 crore small business enterprises, 1.25 crore transporters, 4 crore hawkers and crores of other self-employed groups, women entrepreneurs, labourers, self-help groups, etc.
Speaking at the launch, National Coordinator of the Action Committee and Secretary General of Confederation of All India Traders, Praveen Khandelwal said, "The financial needs of the non-corporate small business sector have been ignored by all previous governments. Yet this is the crying need and has the potential to transform the country’s economy and the welfare of the people."
“Small business is really the big business in India,” Khandelwal added.
The leaders of Action Committee are of the opinion that just as the housing sector has housing finance companies and infrastructure sector has infrastructure finance companies, small business requires small business finance companies.
The non-corporate small businesses sector comprises 5.7 crore enterprises and includes other constituents. The sector employs 490 million people and generates 90 per cent of the employment of the country. Despite contributing 45 per cent of the national GDP, which is three times the corporate sector, only 4 per cent of this sector gets any kind of institutional finance support.
On the other hand, the corporate sector which has enjoyed all the foreign investment and disproportionate share of bank credit, has only added 2.2 mn jobs in two decades, and increased its share in GDP by only 3 per cent during this period.
During the period 1991 to 2011, the corporate sector has received foreign investment of nearly USD 317 billion, of which USD 176 billion was through the stock market and USD 141 billion as direct investment. These facts and figures are sufficient to question the economic thought process of successive governments that have exclusively focused on the corporate sector.
The press release said that leaders of the ACFF will carry out a national public advocacy campaign to muster public opinion and support for small business finance.
The Action Committee shall be holding workshops, seminars and public hearings beginning with one in Mumbai on 11th August, 2014 for next two months.
Further, memorandums will be submitted to the Prime Minister, Finance Minister, Commerce Minister, MSME Minister and senior leaders of different political parties and Chief Ministers of all States in the country and all Members of Parliament from Lok Sabha and Rajya Sabha.
Various Round Table Conferences will also be held with banking and financial experts, economists and stakeholders. During public hearings, people will be asked to submit their experience in obtaining finances from their existing sources and their views on formal financial architecture for non-corporate small business and subsequently a White Paper will be prepared.
The ACFF plans to hold 30 such public hearings across the country in different states and about 10 Round Table Conferences in major cities of different states. The ACFF will make optimum use of social media and shall be interacting through its website smallbusinessisbigbusiness.org. It has also planned a well-defined publicity campaign all over India to make people aware of the factual position. (KNN/ES)
The alliance ACFF launched a nationwide advocacy campaign yesterday to support the Government to achieve the declared policy of formation of a separate financial architecture for non-corporate Small Businesses, according to a press release.
“The Action Committee has been formed in the wake of the Union Finance Minister, Arun Jaitley’s announcement on this subject in his budget speech. Para 102 of the Finance Minister’s speech calls for the constitution of a special Committee of officials from Finance Ministry, MSME Ministry and RBI to develop a new financial architecture to support Small Business Finance,” it said.
The constituents of the Action Committee include the Confederation of All India Traders, All India Motor Transport Congress, All India Confederation of Goods Vehicles Owners Association, All India Transport Welfare Association, Federation of Indian Small & Micro Enterprises, National Hawkers Federation, Bhartiya Kisan Morcha and many other leading organisations of other different sectors.
It represents nearly 6 crore small business enterprises, 1.25 crore transporters, 4 crore hawkers and crores of other self-employed groups, women entrepreneurs, labourers, self-help groups, etc.
Speaking at the launch, National Coordinator of the Action Committee and Secretary General of Confederation of All India Traders, Praveen Khandelwal said, "The financial needs of the non-corporate small business sector have been ignored by all previous governments. Yet this is the crying need and has the potential to transform the country’s economy and the welfare of the people."
“Small business is really the big business in India,” Khandelwal added.
The leaders of Action Committee are of the opinion that just as the housing sector has housing finance companies and infrastructure sector has infrastructure finance companies, small business requires small business finance companies.
The non-corporate small businesses sector comprises 5.7 crore enterprises and includes other constituents. The sector employs 490 million people and generates 90 per cent of the employment of the country. Despite contributing 45 per cent of the national GDP, which is three times the corporate sector, only 4 per cent of this sector gets any kind of institutional finance support.
On the other hand, the corporate sector which has enjoyed all the foreign investment and disproportionate share of bank credit, has only added 2.2 mn jobs in two decades, and increased its share in GDP by only 3 per cent during this period.
During the period 1991 to 2011, the corporate sector has received foreign investment of nearly USD 317 billion, of which USD 176 billion was through the stock market and USD 141 billion as direct investment. These facts and figures are sufficient to question the economic thought process of successive governments that have exclusively focused on the corporate sector.
The press release said that leaders of the ACFF will carry out a national public advocacy campaign to muster public opinion and support for small business finance.
The Action Committee shall be holding workshops, seminars and public hearings beginning with one in Mumbai on 11th August, 2014 for next two months.
Further, memorandums will be submitted to the Prime Minister, Finance Minister, Commerce Minister, MSME Minister and senior leaders of different political parties and Chief Ministers of all States in the country and all Members of Parliament from Lok Sabha and Rajya Sabha.
Various Round Table Conferences will also be held with banking and financial experts, economists and stakeholders. During public hearings, people will be asked to submit their experience in obtaining finances from their existing sources and their views on formal financial architecture for non-corporate small business and subsequently a White Paper will be prepared.
The ACFF plans to hold 30 such public hearings across the country in different states and about 10 Round Table Conferences in major cities of different states. The ACFF will make optimum use of social media and shall be interacting through its website smallbusinessisbigbusiness.org. It has also planned a well-defined publicity campaign all over India to make people aware of the factual position. (KNN/ES)
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