While addressing the gathering at Small Micro Enterprise (SME) conference at Nagpur, Gadkari mentioned that the MSME sector has 29 percent contribution in country's growth and 48 percent of export is done through MSMEs. Similarly, about 10-11 crore jobs have been created in MSMEs.
Besides favourable business rankings, the state had good infrastructure like power supply, he told the America- India SME Council Investors Meet at Washington DC in the US on Thursday.
The investments from micro, small and medium enterprises also enabled creation of 5.96 lakh jobs in the sector, he said after inaugurating the third edition of CII MSME CEO Summit here.
Despite being the growth engine of the Indian economy, MSMEs remain a substantially underserved segment.
Why would anyone want to manufacture in India when the same can be imported for reduced or zero duties?
Finance Minister Nirmala Sitharaman had in August said the government would consider amending the MSME Act to move towards a single definition.
Reduced data prices and increased penetration of smartphones have helped accelerate the digital adoption process for MSMEs.
If there is no shortfall of demand, why hasn’t credit picked up yet?
Income Tax records of existing beneficiaries may hold clues
While it is unclear how the measures will help the sector, it is definitely bad news for PSBs, that are still not out of the woods in terms of asset quality.
The lender has also voluntarily extended the benchmark to micro and small enterprises from October 1
Mudra and Kisan Credit Card schemes need to be examined more closely for potential credit risk.
Globally, India is ranked second on financial technology adoption, with a good 57 per cent hooked to it in 2018.
On UK Sinha panel report, the minister said he has spoken to the finance minister and it has been decided that finance secretary and his MSME counterpart will prepare a final report on the recommendations in the next eight days.
The RBI has made it compulsory for banks to link their new floating rate home, auto and MSME loans to an external benchmark from October 1 so that the borrowers can enjoy lower rate of interest.
The quarterly survey conducted with rating agency Crisil and released September 3, however, finds that small businesses, which are the largest job creators, are sanguine on employment.
MSMEs have been expressing concern over failure of the Micro and Small Enterprise Facilitation Council (MSEFC) in resolving cases of delayed payments within the stipulated 90 days.
Banks are parking almost a trillion rupees daily at the RBI’s overnight repo window. That shows they have money but are unwilling to lend.
The government has finally responded to the clarion call to shore up consumer demand and investments. It’s a long way to go though.
Under CGTMSE, collateral free loans up to Rs 2 crore are given by banks and NBFCs to MSMEs.
Despite the enormous growth potential the MSME sector has, the sector is still plagued with various challenges.
Speaking at a convention of 'Laghu Udyog Bharti', an RSS-linked outfit which works in MSME sector, he also promised to rid the national capital of pollution in five years.
Finance minister Nirmala Sitharaman is holding a series of meetings with stakeholders from various sectors to take stock of the present economic slowdown
No amount of liquidity - and rate cuts – will help unless the structural problems in the NBFC sector are resolved
Moneycontrol's Siddhesh Raut talks to Co-founder and director of Namaste Credit, Lucas Bianchi, to find out all about extending loans to SMEs.