The Centre has acknowledged MSMEs' contribution to the country's economic growth, and the Budget 2023-24 has given a boost to the fund-starved sector with higher credit flow and by simplifying compliances, an official said on Wednesday.
Availability, accessibility and affordability of credit/funds are the main challenges of the sector, said B B Swain, Secretary to the Union Ministry for Micro, Small and Medium Enterprises (MSMEs).
He was addressing a session at the launch of the three-day Indian Foundry Congress (IFC) and India Foundry Equipment Exhibition (IFEX), being organised by the Institute of Indian Foundrymen (IIF) at the India Expo Centre in Greater Noida.
"The government has acknowledged the contribution of MSMEs to the economic growth of the country. Union Budget 2023-24 has given a boost to the fund-starved sector with higher credit flow and by simplifying compliances," Swain said.
He said the launch of a revamped credit guarantee scheme worth Rs 9,000 crore for MSMEs would enable collateral-free credit of Rs 2 lakh crore loans to small businesses.
"Moreover, by reducing the guarantee fee to 1.3 per cent, the government has eased collateral credit/funding for the MSMEs. This will go a long way to support the sector. These measures can be game changers," he said.
Swain said the MSMEs catering to the foundry industry stand benefitted from several measures the government has taken up.
"Over 15,000 MSMEs (out of 5 crore from all sectors) from the foundry industry play the role of a powerful catalyst in making India one of the largest producers and exporters of casting products in the world," he added.
According to the co-chairman of organising committee Vikas Garg, the business meet during the three-day event is expected to close over 10 lakh tonnes of casting product buying-selling deals.
Leading foundry producers and importer countries and their delegates and exhibitors are participating in the event. Russia, Iran, the US, the UK, KSA, Malaysia, Germany, the UAE, Belgium, Bhutan and leading Indian states such as Gujarat, Maharashtra, Karnataka, Tamil Nadu, Punjab, Rajasthan, West Bengal, and Jharkhand, among others, are showcasing their strengths pertaining to new technologies, innovations and sustainability.