Nitin Gadkari’s low-cost fast-growth mantra for MSMEs; here’s how to cut dependence on banks

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Published: December 3, 2019 6:22:09 PM

Ease of Doing Business for MSMEs: The minister stressed on the skill development of the sector for which he underlined training centres and technology being set-up by the ministry.

Nitin Gadkari, MSMEGadkari said that for Indian MSMEs to become competitive globally, the costs will have to go down. (Image: PTI)

Ease of Doing Business for MSMEs: MSME Minister Nitin Gadkari on Tuesday urged India’s small businesses to expand to rural and tribal areas to leverage the lower cost of land and manpower and help boost the employment potential and development of these regions. The minister, speaking at a FICCI event, said that “if more industries and more employment goes to the socially, economically, and educationally backward regions such as tribal, rural and agriculture, then the problem of urban areas can be solved. We are framing our policies accordingly.” Gadkari had earlier called for decentralisation of development in urban cities with a focus on rural, agriculture, and tribal sectors through technology and innovation.

The minister also stressed on the skill development of the sector for which he underlined training centres and technology being set-up by the ministry. Office of the Development Commissioner (MSME) under the Ministry of MSME had invited bids from Central Public Sector Enterprises (CPSE) in October this year as Project Management Consultant (PMC) to support the government in increasing the number of technology centres called Tool Rooms for technology adoption among MSMEs. The ministry is looking to increase the number of such centres from currently 18 to 153 including 15 centres under construction and 120 new centres that have received required approvals, MSME Secretary Arun Kumar Panda had said in September.

Also read: This company wants 75 million Indian MSMEs to have their own website; enters India with these offerings

Gadkari said that for Indian MSMEs to become competitive globally, the costs will have to go down. “How it can be cut along with logistics cut, for this we have made several efforts. The minister also highlighted the challenge of accessing credit faced by small businesses. “There are some concerns around raising finance from banks. I met Finance Secretary yesterday and he was convinced for helping us with Rs 10,000 crore on the government’s behalf. Through this, we will take 10 per cent equity into MSMEs going for listing. Once you have a standing in the capital market, I think the trouble that you face in raising bank loans will reduce significantly,” he added.

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