This is due to the joint efforts made by various government agencies like the Prime Minister’s Task Force on MSMEs, Ministry of MSME, Small Industries Development Bank of India (SIDBI) and National Small Industries Corporation (NSIC).
Rae was speaking at the National Conference on Awareness & Implementation of Government Policies for MSME Development, recently held by the All India Confederation of Small & Micro Industries Associations (AICOSMIA), in association with Helpline Twenty First Century (HTFC), in New Delhi.
Rae further stated that these policies cover a wide range of areas that would impact the growth of MSMEs, including technology, quality upgradation, marketing, finance, entrepreneurial and managerial development.
"Further, for enhancing competitiveness, we have taken up 10 components of the National Manufacturing Competitiveness Programs, targeted at enhancing the entire value chain of the MSME sector,” Rae stated.
Emphasizing the huge number of opportunities that are open to Indian SMEs today, HP Kumar, Chairman and Managing Director, NSIC, said, “The present time, according to me, is a great time for Indian MSMEs. There are various policy benefits, schemes provided by NSIC and other distinguished agencies available today for the growth and development of MSME enterprises. NSIC has launched a comprehensive B2B portal, which facilitates online trading by MSMEs. Banking institutions are doing their bit to stand with the entrepreneurs."
"However, all this is demand-driven. Entrepreneurs have to come up with their actual needs and demands,” Kumar added.
Sudarshan Sareen, National President of AICCOSMIA, spoke about the challenges that Indian MSMEs are facing. He pointed out that lack of awareness and implementation denied the intended benefits to the industry.
“The government prepares policies in favour of MSMEs, but it must also ensure that all these policies are implemented as per the given schedule. The government must also ensure that the right form of awareness is created among entrepreneurs, simultaneously. I would like to urge Mr. Secretary to look upon reviewing the utility of the multiple labor laws, most of which are now archaic, and merge them to a necessary few,” he stated.
Moreover, with respect to the provision of non-performing assets (NPAs), Sareen also said, "The government must look at increasing the 3-month provision to declare a default firm as NPA to one year. Government agencies must consider the payment and cash flow scenario of MSMEs. We cannot rule out the delayed payment made by PSUs and large corporates, which can range between six to eight months.”
UR Tata, CEO of Credit Guarantee Trust Fund, highlighted a scheme that provided guarantee cover of up to 75% on collateral-free credit facility extended by lending institutions.
RP Vaishya, Director, MSME Development Institute, Okhla, gave a detailed description of various beneficial schemes being operated by the Ministry of MSME for strengthening MSMEs in the country.
Manoj Mittal, General Manager, SIDBI, dwelt on the various beneficial schemes of SIDBI for MSME financing.
MK Sharma, Director, ESIC, spoke about the social security provided to factory workers in MSMEs.