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FDI can be explored in NBFCs to strengthen them to support MSMEs: Nitin Gadkari

Updated: Jun 05, 2020 06:26:09am

FDI can be explored in NBFCs to strengthen them to support MSMEs: Nitin Gadkari

New Delhi, Jun 5 (KNN) Union minister of Micro Small and Medium Enterprises (MSMEs) Nitin Gadkari said Foreign Direct Investment (FDI) can be explored in the NBFC sector to strengthen them for extending support to MSMEs.

He said this during a meeting with the representatives of Council of Leather Export, FICCI-‘NBFC Program’ and IMC Chamber of Commerce and Industry on impact of COVID-19 on MSMEs via video conferencing, on Thursday.

The minister opined that strengthening of non-banking lenders or NBFCs, state cooperative banks, district cooperative banks, credit societies, etc is required to extend support to MSMEs during this challenging time.

''Further, foreign direct investment (FDI) can be explored in non-banking financial companies (NBFCs) to strengthen them, which will lead towards greater support to MSMEs,'' said an official statement quoted the minister as saying.

Addressing the representatives of Council of Leather Export, the minister mentioned that the proposal for establishing a leather cluster nearby to Agra Ring Road may be submitted.

Gadkari said that these industrial clusters may develop smart cities, smart villages and other infrastructure to help the people working in the leather sector of Agra.

''The permission from the Ministry of Aviation may be explored for using private airlines for the purpose of sending export products,'' he added.

Gadkari said that the need of the hour is to fight the war against COVID-19 pandemic while continuing the economic activity.

The minister further mentioned that the pandemic can be a blessing in disguise, and we need to utilise this opportunity. He emphasised on usage of PPE (masks, sanitiser etc) and advised to maintain social distancing norms.

He mentioned that special focus is required to reduce imports from other countries.

''The Ministry of MSME is working on two booklets to cover details about last three year's export and import,'' he avowed.


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