Union Budget 2023-24: Rajasthan MSMEs seek easier access to credit

Jaipur, Jan 20 (KNN) The Rajasthan MSME sector that contributed around 24.5 per cent in the State’s Gross Domestic Product in the last four years is facing a tough time in obtaining loans from banks and financial institutions.

Speaking exclusively with KNN India, K.L. Jain, President of Rajasthan Chamber of Commerce and Industry (RCCI) said, accessing finance is a major hurdle for the small units in the state.

“To help MSMEs scale up their businesses, a timely availability of the credit at reasonable rates is a must. The government should bring in a scheme to provide MSMEs with credit at cheaper rates,” the RCCI president told KNN.

Highlighting other issues being faced by the state MSMEs, Jain pointed out that due to largely unorganized marketing network, the Rajasthan MSMEs are facing difficulty competing in the market with large enterprises.

“Due to the Covid-pandemic induced economic slowdown, the MSMEs of Rajasthan were badly affected and because of the resource limitation, focusing on building a market strategy is not viable for the units,” he said.

Therefore I urge the government to pro-actively provide marketing support to the sector through various schemes or platforms, as the sector needs more encouragement to avail the benefits of government schemes, Jain added.

Jambu Kumar Jain, President of SSI Association, Kota told KNN, that one of the major problems that MSMEs are facing is due to the rising rate of interest.

The SSI Association President pointed out that to help MSMEs cope up with the rising rate of interest, the government should either provide a relief package or fix the rate of interest for the sector. This will help in the advancement of industrial activity.

Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget in the Lok Sabha on February 1.  (KNN Bureau)