New govt needs to focus on SMEs for employment generation: Report
New Delhi, May 24 (KNN) The new government needs to focus on Small and Medium enterprises (SMEs) to generate employment, said Care Ratings report.
The report titled ‘Agenda for first 9 months’ said “For private sector employment generation, the government needs to focus on the SME segment as well as start-ups so as to increase the opportunities.”
The report also stressed on focusing on the manufacturing sector.
The job losses of SMEs due to demonetization and GST have to be reviewed so that the action points can be well directed, it suggested.
The government must look internally and fill all vacancies that have been on hold. But we need to ensure that core manufacturing takes place and not just assembly of components, the report said.
On the banking sector, the report flagged that the sector is going through challenges of capital and asset quality.
"The banks continue to be affected by the delays in the NCLT resolution process. Hence a review of the NCLT procedure with the view of speeding up the process, seems necessary.
"The IBC may need some amendments as the rate of resolution of bankrupt companies can be improved," the report said.
The report said the government has been the main driver of capex in the last 2-3 years and the steady pace of investment should continue.
"The focus must now be on reinvigorating private investment and here it would be necessary to review the clogs that are in the way of investment," it added.