Govt to encourage MSMEs choose corporate bond market under new industrial policy

New Delhi, Jan 3 (KNN) Working on a new industrial policy, the Department for Promotion of Industry and Internal Trade (DPIIT) has proposed to encourage MSMEs to choose the corporate bond market through the new policy.

Other suggestions in the proposed policy include providing performance-based loans and incentives for innovation and green growth; leveraging fintech; and accepting intellectual property rights as collaterals for loans, reported ET.

The core aim of the new industrial policy is to incentivise public procurement to promote Make in India.

It intends to create a national digital grid, developing a robust data protection regime, setting up of a technology fund, and creating a task force to continuously identify skill gaps.

According to the report by ET, IT also recommends increased financing sources for industry and a scheme for promoting Made in India brand.

It has suggested various ways for wider access to finance for the industry such as setting up of a development finance institution to provide finance at competitive rates and considering using some part of foreign exchange reserves for such funding.

The draft - Statement on Industrial Policy 2022 - Make in India for the world - has been circulated to different ministries for their views and comments.  (KNN Bureau)