PHDCCI identifies cost of capital as key challenge for MSME sector

New Delhi, Oct 12 (KNN) The PHD Chamber of Commerce and Industry (PHDCCI) has said that for the MSME sector the main issue is the cost of capital and urged the Reserve Bank of India (RBI) and the government to look into the matter.

PHDCCI has estimated the growth rate of the Indian economy at 6-7 per cent in FY23.

“There’s a big demand in the country with production coming back to track,” said Saket Dalmia, President of the Chamber.

The statement comes a day after the International Monetary Fund (IMF) cut its economic growth forecast for India to 6.8 per cent in 2022.

RBI too has cut the economic growth projection for FY23 to 7 per cent from 7.2 per cent estimated earlier on account of extended geopolitical tensions and aggressive monetary policy tightening globally.

The chamber has recognized 75 potential products such as agriculture and chemicals to promote their exports in 75 countries like the US and Europe to help India achieve trade the target of USD 750 billion by 2027.

He said the US, Canada, Germany, France, the UK, Japan, the UAE, and China, among others would be the major focused markets to boost exports of these goods.

The other products include textiles, auto, and pharmaceutical items.  (KNN Bureau)