Speaking at CII’s Annual Session on 2nd June, 2020, Hon’ble Minister for Micro, Small and Medium Enterprises, Mr. Nitin Gadkari said that the Indian MSMEs have the knowledge which is their power and essence for successful practices, and will make them sail through the present times. He said that India has all required elements for a successful economy - raw material, skilled manpower and availability of technology with minimal capital cost.
Mr. Gadkari stressed on the need to increase exports and therefore the need is to focus on logistics, capital, power & electricity and upgradation of technology. He added that people want new options in technology and there needs to be out of box thinking for economic and socially backward areas with focus on employment in agri, rural and MSME in the villages rather than in cities which will increase growth rate and will support in the purchasing power of bigger industries. The decentralization of work will also give exposure to the available talent in India.
Hon’ble Minister also spoke about the recent announcement with respect to the new definitions of MSMEs, Rs. 20,000 cr. subordinate debt for stressed companies, and equity infusion of Rs. 50,000 cr. through fund of funds, saying that these will bolster the growth of MSMEs, enabling them to contribute to the economy & boost employment opportunities.
He said that the higher investment limit will encourage MSMEs to invest in technology and meet global quality standards, improving opportunities for export and integration with global value chains and also supply to some of the global giants that India is trying to woo into India. Mr Gadkari highlighted another issue to focus on three sectors namely insurance, pension and stock exchanges, which has not reached out to most of our population. He said we are working on scheme for SMEs for listing on exchanges with support of government by about 15% equity participation. The “Champions” portal for SMEs launched by Prime Minister Shri Narendra Modiji will help and handhold MSMEs in the present situation, but will also provide guidance to grab the new business opportunities.
It was further said by Mr. Gadkari that the Indian MSMEs have good turnover and rating and therefore the govt has proposed that 15% of the equity would go to capital market to have rolling fund encouraging good MSMEs.
The Minister also asked CII to encourage information on the opportunity, demand and shortage in the specific countries and to take initiative through Ambassadors to give report and thus to have MOU with MEA and MoMSME.
CII appreciated the Minister for implementing the Recommendation of the UK Sinha Committee report and promotion of digitalization which is to be adhered by every Ministry. It also supported Minister’s vision that the private sector should go to villages for investment in agri and rural industries. This will improve World bank ranking in the sector.
The session was moderated by Mr. Chandrajit Banerjee DG -CII, and attended by Mr. Vikram Kirloskar, President CII, Past President Mr. Rakesh Bharati Mittal, Mr. Tarun Das, Ex DG, CII, Ms. Alka Arora, Joint Secretary Ministry of MSME and Mr. Shreekant Somany, Chairman CII National MSME Council.
2 June 2020