New Delhi, Dec 4 (KNN) Minister of Micro Small and Medium Enterprises (MSME) Nitin Gadkari has urged India’s small businesses to set up their businesses in the rural and tribal areas to boost the employment potential and development of these regions.

While speaking at a Federation of Indian Chambers of Commerce & Industry (FICCI) event, the Minister said, “If industries and employment comes to tribal, rural and agriculture areas which are socially, economically, and educationally backward regions, then the problem of urban areas can be solved. We are framing our policies accordingly.”

The minister also stressed on the skill development of the sector for which he underlined training centers and technology being set-up by the ministry.

Further, Gadkari emphasized on to reduce the costs of logistics, power and capital. He said that cost of these need to be reduced in order to boost MSME and increase their share in country's Gross Domestic Product (GDP).

While commenting on the capital cost, the minister said that as compare to other countries our capital costs are high in our country for MSME. We need to reduce capital cost.

Gadkari also stressed on water route to decrease Logistics cost,'' For the last five years i was the Ports and Shipping company and during that tenure we develop water route and we are trying to use it excessively.  From Prayagraj to Haldia the work of water route has been completed and from Haldia to Bay of Bengal and we have also completed Brahmaputra water route.''

''We are also working on to reduce power cost by using solar energy,'' he said.

The minister also highlighted the challenge of accessing credit faced by small businesses. “There are some concerns around raising finance from banks. I met Finance Secretary yesterday and he was convinced for helping us with Rs 10,000 crore on the government’s behalf. Through this, we will take 10 per cent equity into MSMEs going for listing. Once you have a standing in the capital market, I think the trouble that you face in raising bank loans will reduce significantly,” he added.

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