It is paramount that the government creates an independent consultancy body which enable MSME sector to win in the new digital era. Discuss (200 Words)
Refer - Business Line
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IAS Parliament 5 years
KEY POINTS
With the current emphasis on Atmanirbhar, MSMEs have become even more significant to our economic and financial strategy.
Need for consultancy agency
· Most MSMEs in India typically rely on Non-Banking Financial Companies for their financing needs, given the lack of access to the banking sector.
· The number of income tax filers are even less. As a result, Indian MSMEs’ credit requirement has been largely unmet due to limited availability and access to data.
· Formalisation needs to be increased by registration, documentation and certification of entities.
· Need to promote SME bond issuances which can provide a fillip to debt capital markets participation of MSMEs.
· Labour laws are not very conducive to MSME growth. They must strike the right balance between providing a growth-oriented framework for MSMEs.
· Provision of a hassle-free regulatory framework which works for them rather than against them.
Way forward
· MSMEs are the backbone of a resilient national economy. Prioritising their development is critical to the future of the country.
Venkateshwaran R 5 years
Kindly provide feedback. Thank you Mam/Sir
IAS Parliament 5 years
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