SKOCH calls for interventions to make credit accessibility easier for MSMEs

New Delhi, Feb 10 (KNN) Dedicated interventions to make credit accessible for the MSME sector and the need for correction in Emergency Credit Line Guarantee Scheme (ECLGS) are some of the major recommendations given during the inaugural of the Indian economic forum organised by SKOCH Group.

A panel constituting industry experts highlighted the insufficient access MSMEs have to institutional credit discussing the Union Budget and its implications on several crucial issues such as the economic growth, jobs, rural distress, public services delivery and others.

Speaking on the occasion, Ajay Thakur, Head-SME, BSE said, “It is a progressive budget, but MSME sector need focus. Micro sector should be brought into the gambit of formal financing which is imperative for employment generation.”

One of the most crucial challenge discussed was how the recovery has been unequal for the formal and informal sectors of the economy.

Raising the key issue in the Union budget, the panel discussed the loopholes such as the government has not provisioned any significant tax cuts to maintain cash flows for the government.

The Indian economy needs to take, the answer is clear – job generative inclusive growth is the way forward, recommended the forum.

It also suggested that there has to be a linkage of the PLI scheme to job induced growth, as of now most of the sectors getting subsidies under the PLI scheme are very capital intensive.

As the finances of the State Governments are getting squeezed, it has to be ensured that States get their due of taxes as per the recommendations of the 15th Finance Commission, said one of the recommendations.

Proper focus on ensuring uninterrupted delivery of key public services such as education and health along with sufficient monetary allocation to support was also suggested by the panel.

Sameer Kohchar, Author and Chairman, SKOCH Group; Amir Ullah Khan, Research Director, CDPP; Amar Patnaik, MP, Rajya Sabha; Yamini President & Chief Executive, CPR; S Mahendra Dev, Director and Vice Chancellor, IGIDR; Sudipto Mundle, Chairman, Centre for Development Studies; Radhicka Kapoor, Senior Visiting Fellow, ICRIER were also part of the panel. (KNN Bureau)