Indian MSMEs Back On Track After Demonitization | SupportBiz


Indian MSMEs Back On Track After Demonitization

Union Minister for MSME Kalraj Mishra had recently told that normalcy is falling in place slowly despite "initial difficulties".

The union Minister was addressing reporters in the national capital on the ministry's achievements in 2016, Mishra admitted that "there were difficulties initially", but things are moving towards normalisation. "There were difficulties initially, but wage payment to labourers has started normalising and migrant labourers who had left are returning," Mishra said when asked about reports of job losses in the informal sector after the cash recall exercise.

Click here to know 8 Key Schemes From The MSME Ministry In 2016

About banks' reluctance to disburse loans under the MUDRA Yojana in the wake of demonetisation, Mishra acknowledged some issues, saying these are "only for the time being", reports media. Banks are expected to disburse Rs 1.80 lakh crore loans under the Pradhan Mantri Mudra Yojana (PMMY) in the current fiscal. Last year, 3.5 crore beneficiaries availed of Rs 1.22 lakh crore loans under PMMY. Under the scheme, loans ranging from Rs 50,000 to Rs 10 lakh are provided to small entrepreneurs.

To increase sales of khadi products, the government is also trying to penetrate global markets and adopt a franchisee model to open more outlets in India, with an emphasis on attracting youth towards the indigenous fabric, the minister said.

Sales of khadi goods went up by about 29 percent to Rs 1,510 crore in 2015-16. Mishra said the much-awaited Goods and Services Tax (GST) will benefit micro, small and medium enterprises (MSMEs) across the country.