Addressing CII’s India@75 summit, the minister said that these institutions, where government will have no control, would function with proper licence from the Reserve Bank of India
Minister for road transport & highways and MSMEs Nitin Gadkari on Saturday said ‘social micro-finance institutions’ would help create two crore employment opportunities in the country.
Addressing CII’s India@75 summit, the minister said that these institutions, where government will have no control, would function with proper licence from the Reserve Bank of India (RBI).
However, RBI will give the license to these institutions on easier terms and without much paper work. These institutions will provide finance up to Rs 10 lakh to one account and would act as promoting entrepreneurship.
“The proposed micro-finance institutions will have potential to create two crore jobs in the country. The proposal needs approval from the finance ministry and the union cabinet though,” the minister said. These institutions will provide easy finance to small entrepreneurs and encourage entrepreneurship.
Gadkari said eradication of poverty and generation of employment remained the biggest challenges for the government at present; but at the same time, without creating employment, poverty cannot be eradicated.
He also emphasised on the need of making Indian MSMEs equipped enough that they can substitute imports and the country become self-reliant. By technology upgradation, India can also look for new export avenues in MSME sector. This will help grow a large number of ancillary units.
The government has recently expanded the MSME umbrella and industry with investment value upto `50 crore and turnover upto Rs 250 crore has been covered in the new definition of MSME. Also, the manufacturing and service sectors under MSME have been brought together by giving similar definitions to both.