Govt keen to increase credit availability to MSMEs: Official
New Delhi, May 30 (PTI) The government wants to increase credit availability to micro, small and medium enterprises (MSMEs) and also improve them by enhancing technology, an official said on Friday.
Addressing CII's Annual General Meeting, Rajneesh, Additional Secretary and Development Commissioner, Ministry of MSME said India is the fourth largest economy today and would be the third-largest soon.
Rajneesh highlighted how MSMEs took a hit during COVID-19 but turned around very fast.
He said that MSMEs provide employment to 27 crore people and that is why the ministry keeps them in mind while making policies.
"We want to increase credit availability to MSMEs. This year Budget provided for providing credit cards to micro enterprises," he said adding MSME NPAs (bad loans) were less than 5 per cent in last five years as per RBI data.
He also highlighted the role of technology to improve MSMEs, suggesting that through use of technology issues between environment concerns and growth aspirations can be resolved.
Sunil Mathur, Managing Director and CEO of Siemens Ltd said, today average productivity level is 75 per cent in India whereas it is over 90 per cent in Europe and use of technology can help bridge this gap (productivity). He pointed that Indian MSMEs are dealing with challenges like access to market and finance.
Shreekant Somany, CMD Somany Ceramics said digitisation helps MSMEs reduce cost and improve operational efficiency and suggested that MSMEs find new ways for rating them properly so that they get required financial facilities.
"We must support MSME innovation hubs for improving quality of products to meet global standards," he said opining that regulatory compliance burden is heavy on MSMEs.
Deepak Jain, Chairman Lumax Group said MSMEs represent the true entrepreneurship spirit of India.
"We need to have very collaborative ecosystem... today ecosystems compete with each other, " he said citing example of China competing with other ecosystems globally. He stressed on the need to support MSMEs saying that supporting MSMEs should be a national competitive strategy.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
IFL Enterprises turns around business in March qtr, shares rise 20%
Gujarat-based IFL Enterprises on Friday announced turning around its business operations in the March quarter as the company reported a profit of over Rs 3 crore for the period. Shares of the agri-commodity trader rose by nearly 20 per cent to hit the upper circuit on BSE after the announcement of the financial results . The company, engaged in the agri commodity business reported a loss of Rs 67.87 lakh in the corresponding quarter of the previous financial year. Revenue from operations during the last quarter of FY25 rose multifold to Rs 72.13 crore against revenue of Rs 1.98 crore in Q4 FY24. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo For the financial year that ended March 2025, the company achieved revenue from operations of Rs 120.60 crore, over 13-fold rise compared to Rs 8.24 crore in FY2023-24. Net profit also rose to Rs 2.99 crores in FY25 from Rs 84.5 lakh in FY24. The company said it has expanded domains such as trading of agricultural produce, including fruits, vegetables, and seeds. It had raised Rs 49.53 crore through a rights issue in June last year to fund its expansion plans. PTI
The Hindu
an hour ago
- The Hindu
CODISSIA opposes the proposed hike in power tariff from July 1
The Coimbatore District Small Industries Association has urged the Tamil Nadu government and the Tamil Nadu Electricity Regulatory Commission (TNERC) to not implement the proposed increase in power tariff for industries from July 1. The Association president, M. Karthikeyan, said in a press release that the hike, if implemented, will impact the sustainability of the Micro, Small and Medium-scale Enterprises (MSMEs). The industries are currently operating just 50% to 70% capacity due to high cost of raw material costs, increase in operational costs both in domestic and global markets, shortage of manpower, recent uncertainties such as the US import tariff, the geo political situation and war conflicts A further rise in power tariff could lead to additional financial stress, reduction in industrial output, job losses and even closure of industries. The government should reconsider the multi-year tariff revision and not implement any hike in electricity charges for the MSMEs, he said.
&w=3840&q=100)
Business Standard
an hour ago
- Business Standard
India to revamp maritime rules for emission goals; shipping costs to rise
The Indian government is drafting new rules to align the maritime sector with the International Maritime Organisation's (IMO) upcoming emission regulations, Mint reported on Saturday. The move is part of a broader effort to support India's maritime development and green transition goals. The proposed rules will influence the design, construction, and operational costs of ships, as well as the structural planning for new mega ports and shipyards. Developed under the IMO's Revised GHG Strategy 2023, these standards will introduce new fuel norms for ships and a global carbon pricing mechanism. 'These regulations will also define parameters for building green fuel filling stations at ports, and training programmes for the workforce involved in related activities,' a source told Mint. New ships built at Indian shipyards will either need dual-fuel capabilities or be entirely designed to run on green fuels such as compressed natural gas, liquefied natural gas, methanol, ammonia, green hydrogen, or electricity. Currently, diesel is the primary fuel for vessels operating on inland waterways, select coastal routes, and international voyages. Phased emission reductions The new rules will feature a phased plan for carbon dioxide (CO2) emissions reduction and a timeline for green upgrades at ports. Shipowners will be required to engage classification societies for early compliance assessments. The Directorate General of Shipping (DGS), under the Ministry of Ports, Shipping and Waterways, has already issued a guidance note outlining the IMO's Net Zero Framework and Greenhouse Gas Fuel Intensity (GFI)-based compliance requirements. The advisory aims to help stakeholders familiarise themselves with the regulations and plan for their implementation. The IMO's action plan targets net-zero emissions from international shipping by 2050 through a mix of technical fuel standards and market-based pricing mechanisms. The GFI-based system will formally take effect in March 2027 and become operational in 2028. It requires a gradual reduction in the carbon intensity of fuels used by ships over 5,000 gross tonnes (GT) engaged in international trade. This applies to all ships flagged under MARPOL, the main international convention for preventing marine pollution. Economic and strategic impact According to Mint, the new regulations are expected to have far-reaching operational, economic, and strategic implications for shipowners, ports, training institutes, classification societies, and fuel suppliers. The DGS estimates that India's compliance cost could be $87–100 million annually by 2030, translating to a 14 per cent increase in fuel costs and a 5 per cent hike in freight rates. However, India could also see strategic benefits, as it aims to produce 5 million tonnes of green hydrogen by 2030, which would enable the production of 28 million tonnes of ammonia and 26.3 million tonnes of methanol — both qualifying for compliance credits under the IMO's GFI system. Implementation strategy The DGS has advised all stakeholders — shipowners, port authorities, fuel suppliers, and training institutions — to review the guidance note and begin preparations, including fuel intensity monitoring, workforce training, and green infrastructure planning. Although only 14 per cent of India's registered fleet currently qualifies for IMO compliance, domestic shipyards are already exploring retrofitting and green ship designs to capture new market opportunities. Exporters relying on foreign ships may face higher freight costs if those vessels fail to meet GHG compliance, making it essential to factor these regulations into chartering decisions.
