Ease of Doing Business for MSMEs: MSME Minister Nitin Gadkari on Thursday underscored the chance MSMEs in India have to plug themselves into the worldwide provide chains as nations look to diversify their provide out of China. “With global supply chain undergoing significant restructuring and countries looking to diversify their supply out of china, our MSMEs have a great opportunity of being integrated into these global supply chains,” Gadkari mentioned. According to a survey covering more than 150 corporations in India by FICCI and Dhruva Advisors in December 2020, 69 per cent of the respondents anticipated worldwide corporations to exit China and move to India. For instance, Japan had added India and Bangladesh to its list of relocation destinations for enterprises moving their manufacturing web pages from China to the Association of Southeast Asian Nations (ASEAN) nations, according to a report by Nikkei newspaper in September final year.
Gadkari mentioned through the pandemic, MSMEs have been in a position to adapt to the altering situations and aid India get back on a development trajectory. “We took some steps in coming up with relief packages to help review the MSME sector. Early on itself, we announced a financial package of one lakh crore for reviving MSMEs that were affected by the lockdown,” the minister mentioned through Amazon’s Smbhav occasion. Till March 2021, an quantity worth Rs 2.46 lakh crore has been sanctioned beneath the Emergency Credit Line Guarantee Scheme, he added. Likewise, the government is setting up a Rs 10,000-crore Fund of Funds for MSMEs, which have fantastic turnover, GST, and revenue tax record, to be provided a rating for a 15 per cent equity assistance from the government on raising capital from stock markets.
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The minister stressed on e-commerce playing a definite function in assisting Indian MSMEs succeed. “We need to ensure that digital transformation takes place that enables them to capitalise on this current opportunity. In parallel, there needs to be a greater focus on capacity building for MSMEs. This includes helping them with right inputs on design, manufacturing, maintaining product quality and scaling their business.”
Even as the government continues to encourage modest firms to leverage the e-commerce route for expansion, its personal e-commerce marketplace project Bharat Craft is but to take off in spite of more than a year and a half soon after the MSME Ministry had announced the portal. The government is searching to outsource the project to a private entity. Addressing an occasion organised by SME body India SME Forum in Mumbai final month, Gadkari had mentioned, “We had multiple rounds of meetings with Government eMarketplace (GeM) as well…but now I have asked the portal to be outsourced to a private player. The better the portal performs, the better the commission private player will get. Also, an agency will be finalized, which will be responsible to deliver the project, because there are multiple issues that occur within the government while rules are also difficult.”