Jaipur, Oct 9 (KNN) The government should reduce the minimum investment limit to avail capital subsidy under the Rajasthan Investment Promotion Scheme (RIPS) 2022 from Rs.25 crore to Rs.5 crore to boost the development of the MSME sector in rural areas and curb migration to urban areas, said CA Radhika Pachar, a hospitality expert. Reported TOI.

Addressing a gathering at the “Rajasthan MSME Summit & Innovation Expo” Pachar said that the initial capital investment requirement of Rs 5 crore was recently increased to Rs.25 crore for availing the capital subsidy ranging from 10-13%.

"Even though interest subsidy of 50% is given to MSMEs, raising the investment limit reduced the effectiveness of the incentive. For MSMEs in rural areas, investment of Rs.25 crore is a big ask. If the threshold is reduced to 5%, it will attract more entrepreneurs," she said.

Pachar, also a chartered accountant, suggested that the government should develop craft bazaars for craftsmen in the lines of haats. (KNN Bureau)