The government is in the process of formulating a policy on credit ratings for micro, small and medium enterprises to help investors and other players take informed decision, Union Minister Nitin Gadkari said on Monday.
Addressing International Women’s Entrepreneurial Challenge Foundation, Gadkari said MSME contributed 49 per cent of India’s total export.
The event was organised by Ficci Ladies Organisation (FLO) here.
“We are going to start digital data based credit rating system… we are going to make the rating of the industry… it can give information about the MSMEs. That can be more easy for taking any decision because rating is now very important. So, now we are formulating the policy and we are going to make some scheme for them and that will be very useful,” MSME Minister Gadkari said.
The minister also said that the government is using technology and innovations to boost agricultural and tribal sectors through new technologies and innovations.
He gave examples of honey and oranges being used in various products, which has resulted in the increased production and market value of these products.
The government is working on backward integration to develop rural industry and create employment, he said, adding that the employment potential is 11 crore.
At the same time, innovations and skill development in the MSME industry are being carried with the collaboration of German government to make Indian products more competitive in the International market, he said.
He emphasised that the international companies should look at India for setting up their manufacturing base as it will reduce their manufacturing cost by 25-40 per cent while ensuring the quality.
The minister also asked MSMEs to get listed on stock exchanges, saying he has already requested the finance ministry to allot Rs 10,000 crore to the MSME ministry for buying equity of such entities.
“I had gone to the National Stock Exchange…and we got 20 MSME companies registered on the stock exchange… Now thousands of companies are in the queue and they are going for capital market. Suppose, they are going to raise bond issue through capital market, 10 per cent will be purchased by the government. We are giving them support,” he said.
To boost the morale of women entrepreneurs in India, he announced to launch a book and website of 100 successful women entrepreneurs with FLO to show the path and encourage to thousands of women willing to become entrepreneurs.