Agra, July 30 (KNN) To foster equitable and sustainable economic growth special MSME support policies such as Priority Sector Lending for MSMEs in India may be kept out the gambit of Basel norms, says Additional Secretary and Development Commissioner MSME Mr. S.N. Tripathi. 

Mr. Tripathi was inaugurating the BRICS SME Round Table held recently at Agra where delegates from Brazil, Russia, India, China and South Africa were participating.

Mr. Tripathi, who is an expert on MSME credit, mentioned in his address that the strict capital adequacy requirements under the Basel norms for banks, particularly the third party credit rating, may have made credit availability to MSMEs, restrictive and costly.

After Russia last year, the BRICS SME round table is held in India as part of series of meeting being held in India as a precursor to the BRICS Summit scheduled to be held later in October this year where heads of state of all five countries are to participate.

The SME group in BRICS was formed largely at the behest of India.

During the round table, the role of SMEs as vehicles for inclusive growth was discussed and it was an unanimous opinion that only SMEs can uplift the people at the far end of the growth train by creating large number of jobs.

The round table also opined for the unfettered growth of the SMEs they should be provided preferential treatment in trade, investment and commerce.

The Development Commissioner mentioned that keeping in view the crucial role of SMEs in inclusive growth, In India they have been classified as priority sector for Banking.

He opined that similar preference should be given to SMEs by all BRICS nations all of whom has a large section of population below the poverty line.

Participating in the discussions, Mr. Anil Bhardwaj, Secretary General, FISME, mentioned that BRICS forum could leverage its might in securing special dispensation for MSMEs in all multilateral and preferential trade agreements including support measures for linking MSMEs to Global Value Chains (GVCs).

It may be mentioned here that India MSME sector, led by FISME, are up in arms for an immediate withdrawal of the third party rating of SMEs as an essential condition for Bank loan approval.

Many of the leading MSME Associations have also written to the Prime Minister for his immediate intervention in the issue. (KNN Bureau)