Here Are Nitin Gadkari's Plans for the MSME Sector and its Development
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Nitin Gadkari, Union Minister of MSME, Road Transport and Highways, stated government’s plan for rectifying the problems faced by MSMEs. Speaking at an event at ‘MSME Ecosystem’ summit organized by FICCI, based on the theme, ‘Connecting Dots & Bridging Gaps’, he mentioned that Post introducing GST, companies are facing troubles related to the production and finance. He urged the companies to submit their business concerns to the authority, following which; finance ministry will be approached to rectify the business hurdles.
Gadkari said, “Some problems exist even after the introduction of GST. Whatever your concerns are, I will speak to the Finance Minister about it and try to find solutions for the sector.”
Also Read: How the Government Will Help MSME Bad Loans
Credit Rating System
At the summit, Nitin Jairam Gadkari announced that the Government is in a bid to introduce a credit rating system for providing MSMEs with business and trade convenience. He mentioned that by using credit rating system, MSMEs can raise funds through capital market in a feasible manner. By bringing the proficient digital database, it will become easy for MSMEs to avail funds and run business at a progressive pace. “We are planning to introduce a digital database credit rating system so that the industry members with good credit ratings can easily go to the capital markets for capital,” he said.
Prioritizing the rural and tribal areas, Gadkari mentioned that rural and tribal areas are advantageous for business growth. He urged the industrialists and business tycoons to eye the rural and tribal areas for
expansion in order to reduce the cost of production in the company. According to him, rural and tribal areas are richer in manpower and resources than urban areas.
“If more industries are set up in these areas, we can effectively address the problems of overcrowded urban areas, we are making policies on this basis,” said Mr Gadkari.
He emphasized on the need to increase exports and reduce dependence on imports. “If we want to become competitive in international markets, we must reduce our capital cost as well as logistics cost,” he said.
Sandip Somany, President, FICCI, said that the MSME sector has a very significant role to play in the country’s economic performance. “At present, the definition of Micro, Small and Medium Enterprises (MSMEs) is based on investment in Plant and Machinery for manufacturing MSMEs and investment in Equipment for service sector MSMEs. The need for change in this definition has been necessitated and raised by various stakeholders,” said Mr Somany.