"We are in talks with various stakeholders, including banks and associations of manufacturers, etc., to frame a policy for recovery from MSMEs," Natchiappan said.
The minister was talking to the reporters at the sidelines of IEEMA event in Mumbai.
Natchiappan, however assured that, the government is also considering a CDR-type mechanism, which will help the MSMEs to restructure their loans; a common practice in large corporates in the manufacturing sector.
The minister expressed worries about rising input costs and higher interest rates, which are forcing the MSMEs units to wind up. “We are working on framing guidelines, whereby we could come out with some kind of relief for them to rejuvenate their businesses. We are evaluating all the options and expect to come out with a plan soon," he said.
Natchiappan stressed on the need of skill development in the sector to make it globally competitive. "The industry has to spend time and money on their training. This is one of the major reasons for the low productivity of manpower in India as compared to other economies," he said.
He also assured that, the government will provide more safeguard to the domestic industries against cheap imports from China.