Strengthening MSMEs must to create new jobs

Abstract

The Reserve Bank of India governor recently acknowledged that micro, small and medium enterprises (MSMEs) face difficulties in accessing credit and has suggested the use of technology to facilitate such flow of credit. KC Chakrabarty, deputy governor, also observed recently that inadequate flow of credit to MSMEs has been one of the factors constraining growth of the sector. Again, according to recent reports, the Standing Committee of RBI has been working on this problem. MSMEs are an important sector contributing 8% of countrys GDP, 45% of manufacturing output and 40% of exports, according to the inter-ministerial committee on MSMEs (September 2013). It is estimated that 3 crore MSMEs providing employment to 7 crore persons are manufacturing more than 6,000 products. And the growth in the sector has been slowing down in recent years. Hence, there is a need to think out of the box to ensure flow of credit to MSMEs. Read more at: https://www.financialexpress.com/archive/strengthening-msmes-must-to-create-new-jobs/1247087/