New Delhi: There is a need to take more steps to provide easy loans to micro and small units with the help of private and public-sector banks, the MSME ministry has said.
“The MSEs are getting benefited through finance available from the banks…But all industries are not getting finance,” Minister of Micro, Small and Medium Enterprises (MSME) Virbhadra Singh has said here.
Credit availability and poor technology are the major challenges faced by the small-scale enterprises in India.
“The government has given lot of impetus for credit guarantee to the small-scale sector. There is a much requirement to ensure credit availability (from the banks and government side),” Singh said while addressing the business forum organised by IndiaMART last night.
He stressed up on the need to make the small-scale sector more organised with the help of big corporates.
The MSME sector is highly unorganised and contributes 45 percent of the country’s manufacturing output.
“Big industries must play a role of guardian. They should infuse science and technology into the MSE sector so that micro units can also manufacture good products”.
On the current economic slowdown, he said that it is just a passing phase and India is on a recovery mode. “We are passing through a difficult phase. Let us not be disheartened. We have enough resources to fight it. We are on the road of recovery”.
He said the slowdown is a global phenomenon and mighty countries like the US, Europe and Japan are facing a similar downturn.
“There is no need to panic. We will pass through internal pressures which are hurting us,” the minister added.
There are around 26 million MSEs in the country that provide employment to around 60 million people.