Here’s How Private and Government Bodies Supporting MSMEs

The Indian government is lately planning to enable SMEs to act as a foundation for larger industries in the country
  • BY Jaspreet Kaur

    Feature Writer, BusinessEx

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  • Aug 20,2021
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  • 11 Mins Read

The MSME industry has been impacted for the past one year. Despite being an important contributor to the Indian economy, it is hollow from within due to weak infra and financial support. However, a series of moves have been taken to strengthen the MSME sector. The Indian government, as well as private bodies, are taking steps to shore up small and medium-sized companies in the country. 

Making SMEs a Concrete Ground 

The Indian government is lately planning to enable SMEs to act as a foundation for larger industries in the country. According to The Economic Times’ report, the Union Minister of India, Jitendra Singh stated that supported by competitive and cutting-edge technology, the Micro, Small, and Medium Enterprises (MSME) will be the foundation for bigger industries in India.

"New business enterprises are heavily dependent on scientific technology and for the industry and also the big and small enterprises to realise their optimum utilisation in contemporary India, not only scientific applications but also scientific temper and scientific attitude will be essential for success," Singh said in the official statement of 7th India International MSME Expo Summits 2021.

Besides this, the scientific community is requested to share successful research and development results with the sector and corporate houses. The MSME ministry has set a target to increase MSMEs’ contribution to GDP nearly 50 per cent by 2025, in turn, making the country a $5 trillion economy. 

Financially Backing the MSMEs

The US-based social media company, Facebook India has rolled out ‘Small Business Loans Initiative’ to help SMBs. The SMBs that promote themselves on Facebook will get quick access to the credit via independent lending partners. According to The Economic Times’ report, India is the first Facebook country where this programme is getting rolled out and is open to businesses registered across 200 towns and cities of India.

“More than a third of the small businesses whom we spoke to said that cash flow was a big challenge for them. Access to timely capital is more important than ever as it can help them jumpstart their recovery and drive big growth. The challenges around securing credit and timely credit inspired us to design this programme,” Ajit Mohan, VP and MD Facebook India said, as per the media report. 

This programme was released at ‘Enabling MSME Growth through Financial Inclusion’ event wherein Facebook partnered with  Federation of Indian Chambers of Commerce & Industry (FICCI).

Imparting Knowledge to MSMEs 

Sundaram Finance and MSME DI have reportedly together come to educate MSMEs regarding public procurement policy and government e-marketplace in a free webinar. According to the Times of India’s report, under the ‘MSME-Need to Know Information’ series, the two companies will be concertedly imparting knowledge to SMEs about vital topics, providing in-depth information.

In addition, the speakers will teach the audience about the Udyam registration process that has become compulsory by the government. 

These are the recent developments that took place in the MSME industry. The MSME sector is still nascent as new opportunities are emerging every now and then. 

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