The MSME sector needs the most policy attention, and the government will continue to do whatever it takes to promote the sector, Niti Aayog Vice Chairman Rajiv Kumar said Friday.
Kumar said at a virtual event hosted by the Institute for Industrial Development (ISID), the government and the Reserve Bank of India (RBI) announced several steps to support the small and medium-sized enterprise (MSME) sector.
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“The MSME sector requires the most policy attention of all stakeholders … Much has been written about the MSME sector, but some of the sector’s challenges remain unmet until recently. I did, “he said.
According to Kumar, MSME’s revenue was hit by 50%, and one-third of such companies suffered a decline in revenue and profits during the pandemic. “We will continue to do whatever it takes to promote the MSME sector.”
He listed several measures announced by the government to support the MSME sector and said that under the Emergency Credit Line Guarantee System (ECLGS), Rupees of 2.73 rupees were sanctioned.
“MSME’s risk capital requirements have been addressed,” he said.
Kumar said Indian SMEs can now become part of the global supply chain with government-announced changes to the definition of MSME and labor reforms.
He said that 49.8 percent of India’s exports come from the MSME sector. Today, Kumar added that 99% of the total 63 million MSMEs are “micro” and only 1% of the entities are in the “small and medium” range.
He also emphasized the need to increase spending on research and development (R & D). This is currently below 1 percent of GDP.
MSME warns! The sector needs the most policy attention! Check what Niti Aayog Vice Chairman Rajiv Kumar said
https://www.zeebiz.com/small-business/news-msmes-alert-sector-needs-most-policy-attention-check-what-niti-aayog-vice-chairman-rajiv-kumar-said-161815 MSME warns! The sector needs the most policy attention! Check what Niti Aayog Vice Chairman Rajiv Kumar said