Repeating Amazon, Alibaba success for MSMEs; govt plans to do what e-commerce giants did in China, US

By: |
Updated: July 25, 2019 4:46:29 PM

Nitin Gadkari said that the government has decided to set-up a web portal within a month for products made by MSMEs similar to “what Alibaba has done to China's growth and Amazon in the US."

Bank credit to MSME has risen from Rs 10.70 lakh crore during March 2017 end to Rs 14.97 lakh crore in March 2019.

During the question hour in the Lok Sabha on Thursday, MSME Minister Nitin Gadkari said that the government has decided to set-up a web portal within a month for products made by MSMEs similar to “what Alibaba has done to China’s growth and Amazon in the US,” even as he expressed confidence of the new MSME portal generating Rs 10 lakh crore turnover in coming two years, PTI reported citing him. “The programmes like Government e-Marketplace — the procurement portal for all government companies proves that government can do it (MSME portal) but whether they can do even for the private players etc., is something that we need to find out. So the capability is certainly there because of the GeM but this capability has only been proven on the government front,” R Narayan, Senior Vice President, FICCI CMSME &  Founder and CEO, Power2SME told Financial Express Online.

Also, a partnership with private companies can be worked. For example, the government’s UPI programme used by Flipkart, PhonePe, AmazonPay. This kind of partnership can be worked but “whether the government can do it on their own we have to see,” said Narayan adding that the government would have to make it mandatory for players to register to the portal to become an instant success but if they don’t do it then it becomes extremely questionable.

The minister also informed that the bank credit to MSME has risen from Rs 10.70 lakh crore during March 2017 end to Rs 14.97 lakh crore in March 2019. Access to credit has been critical for MSMEs growth even as the government had last month asked the heads of all the public lenders for doing an “in-depth analysis” to issues in the availability of credit faced by MSMEs under the MSME Support and Outreach Campaign launched by Prime Minister Narendra Modi in November last year.

On Tuesday, five public sector lenders including SBI, Andhra Bank, Corporation Bank etc., had announced an extension of in-principle approval for a term loan or working capital loan from up to Rs 1 crore to Rs 5 crore for MSMEs on PSBloansin59minutes.com. The portal, which was launched in September last year, had sanctioned 1,33,448 cases till July 17, as per MoS Finance & Corporate Affairs Anurag Singh Thakur in a written reply to a question in Rajya Sabha out of total 2,00,660 applications. However, “banks have sanctioned 36,000 loans under the psbloansin59minutes.com,” PTI reported citing Nitin Gadkari. The minister said that the government has adopted the Cluster Development Approach to boost productivity, competitiveness and capacity building of micro and small enterprises.

The minister on Monday in Rajya Sabha had said that 4.36 lakh credit facility (collateral free number of loans) were given Rs 30,168.57 crore in FY19 to MSMEs up from 2.63 lakh such loans were given worth Rs 19,065.91 in FY18.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1This is how SME exporters can tide over their working capital crunch
2Rs 1,700 crore poured into 254 startups by SEBI’s alternative investment funds
3Yes Bank to offer MSMEs up to Rs 3-crore loan through unique surrogate lending model