New Delhi, Apr 12 (KNN) The Confederation of Indian Industry (CII) has called for reforms to support micro, small, and medium enterprises (MSMEs) in accessing formal finance and transitioning to sustainability.

CII President R Dinesh emphasised the need for big-ticket reforms in four broad sectors, including MSMEs, to foster inclusive growth in the country.

Speaking about MSMEs, Dinesh said, "We have MSMEs today, to get them better access to the formal economy and funding from banks and fintechs, what is needed is that the ECLGS (Emergency Credit Line Guarantee Scheme) scheme which the government had announced can be institutionalised as a support for them", reported AN.

He further suggested that this institutionalization should be done with a rating agency tie-up, which can help make the rating suitable for MSMEs, enabling them to access finance from banks and fintech players.

Dinesh also highlighted that a significant challenge for MSMEs is securing funding for their transition to sustainability and green energy.

To address this, he proposed the creation of a dedicated fund to support MSMEs in their efforts to adopt sustainable and environmentally friendly practices.

The CII president emphasised that inclusive growth is crucial for India's economic progress, and the country needs to grow between 8 per cent and 9 per cent to reach its targeted benchmarks of a USD 5 trillion economy by 2027 and a USD 7 trillion economy by 2030.

In addition to reforms for MSMEs, Dinesh also advocated for reforms in the labour, agriculture, and fintech sectors.

He recommended the formation of a GST council-like body to reach a consensus between the center and states on crucial agricultural and labor reforms, ensuring their proper and timely implementation.

(KNN Bureau)