New Delhi, 29 June (KNN) Ahead of the first full Budget 2019 to be presented by Finance Minister Nirmala Sitharaman, Micro Small and Medium Enterprises from Uttar Pradesh wants government to reduce interest rates on loans extended by banks to MSMEs.

Speaking with KNN India on behalf of MSMEs in Uttar Pradesh, Indian Industries Association (IIA) President, Sunil Vaish said that availability of finance at affordable interest rates is a big problem for MSMEs everywhere.

He said “MSME sector faces a shortage of credit flow which has to be increased. Other than this, loan interest for MSMEs falls in between 8 percent to 13 percent which is unfavorable for the sector. As due to high production cost industries are facing issues and we expect that interest should be brought down to 5 to 6 percent against 8 to 13 percent”.

He said MSMEs are expecting some consideration on this issue from the current government.

We want cooperation from the government on various issues like infrastructure, expenditure, roads, and drainage should be brought into light and cooperation from the Government side would encourage the growth of this sector.

MSME sector plays a key role in growth and development of any country. In India, it contributes 28% of the country’s GDP and about 45% of the manufacturing unit. MSME sector holds employment of nearly 11 crore people and is crucial for well-being of society. (KNN/VS)