Veteran Mishra to steer MSMEs out of slowdown
Updated: May 27, 2014 12:50:19pm
New Delhi, May 27 (KNN) The new MSME Minister Kalraj Mishra, a veteran politician with solid grassroots background, has a job cut out in terms of enthusing India's micro, small and medium enterprises into playing a pre-dominant role in the country's economy, well beyond the stock market-driven corporates.
Mishra,73 will have the BJP manifesto as a guiding principle besides a dynamic feedback he will receive from industry bodies such as Federation of Indian Micro and Small & Medium Enterprises (FISME).
BJP in its manifesto had made promises to accord key status to the SMEs for economic development by giving them a healthy and harassment-free business environment.
BJP manifesto focusing on trade and economy said, “BJP considers that the role of SME sector is crucial for the economic development of our country. The sector needs to be developed by providing international linkages for exports, availability of credit through a dedicated SME bank, supply chain efficiencies, adoption of IT, support in R&D and innovation, and a policy support for enhancing the mandate to purchase from SME for large scale projects.
BJP promised to review the existing laws with regard to the cooperative sector, and amend the multi-state cooperative act to remove lacunae and anomalies. The manifesto laid emphasis on the labour intensive sector and handicrafts, and promised to “move up the value chain of the sector driven by a focus on quality.”
The MSME sector contributes about 8 per cent of the country’s GDP and 45 per cent of its manufactured output. It provides employment to around 60 million people.
The sector, which is unorganized and scattered, is embattled with the issues of credit crunch, labour shortage - both skilled and unskilled, delayed payments from the large enterprises that are their main buyers, infrastructure etc.
The sector, despite having the potential to deal with the problem of unemployment in the country, still has untapped potential for employing both skilled and unskilled workers both in rural as well as urban areas.
According to a recent report of the Private Sector Investment for MSME Sub Group under Working Group for the 12th Five Year Plan (2012-2017), the estimated outstanding credit demand and supply gap of MSMEs in 2016-17 will be 43 per cent at Rs 16,33,111 crore. Even when the demand-supply credit gap would come down, it would still remain at 41 per cent high. (KNN/SD)
Mishra,73 will have the BJP manifesto as a guiding principle besides a dynamic feedback he will receive from industry bodies such as Federation of Indian Micro and Small & Medium Enterprises (FISME).
BJP in its manifesto had made promises to accord key status to the SMEs for economic development by giving them a healthy and harassment-free business environment.
BJP manifesto focusing on trade and economy said, “BJP considers that the role of SME sector is crucial for the economic development of our country. The sector needs to be developed by providing international linkages for exports, availability of credit through a dedicated SME bank, supply chain efficiencies, adoption of IT, support in R&D and innovation, and a policy support for enhancing the mandate to purchase from SME for large scale projects.
BJP promised to review the existing laws with regard to the cooperative sector, and amend the multi-state cooperative act to remove lacunae and anomalies. The manifesto laid emphasis on the labour intensive sector and handicrafts, and promised to “move up the value chain of the sector driven by a focus on quality.”
The MSME sector contributes about 8 per cent of the country’s GDP and 45 per cent of its manufactured output. It provides employment to around 60 million people.
The sector, which is unorganized and scattered, is embattled with the issues of credit crunch, labour shortage - both skilled and unskilled, delayed payments from the large enterprises that are their main buyers, infrastructure etc.
The sector, despite having the potential to deal with the problem of unemployment in the country, still has untapped potential for employing both skilled and unskilled workers both in rural as well as urban areas.
According to a recent report of the Private Sector Investment for MSME Sub Group under Working Group for the 12th Five Year Plan (2012-2017), the estimated outstanding credit demand and supply gap of MSMEs in 2016-17 will be 43 per cent at Rs 16,33,111 crore. Even when the demand-supply credit gap would come down, it would still remain at 41 per cent high. (KNN/SD)
Loading...
