MUMBAI, INDIA - World Trade Centre Mumbai and All India Association of Industries (AIAI) in association with Institute of Small & Medium Enterprise and Development, Cochin organised an event on the occasion of the release of the 18th India Micro Small and Medium Enterprises Report 2015.

Mr. S. S. Mundra, Deputy Governor, Reserve Bank of India was the Chief Guest of the event. He addressed the audience on financial issues faced by the MSME sector. Non-performing assets (NPAs) occurs largely due to uncontrollable or unexpected factors in the economy and willful default on the part of the borrower was only miniscule. An account becomes an NPA, reflecting constraints faced by the unit, which requires the bankers and agencies concerned should help out by handholding it.

Mr. Mundra added that MSMEs must be encouraged to come on board with the, to be launched Electronics Trade Receivables Discounting System (TReDS). The trade platform will be an efficient, transparent and real time system to settle receivables.

Referring to the credit guarantee fund trust for micro and small enterprises (CGTMSE) scheme, he said that industry bodies and other stakeholders should join CGTMSE as the government was planning to raise the funding ceiling under the scheme. This could bring in discipline in payment by large corporate to the SMEs. Further, RBI has taken various measures to boost bank credit to the MSME sector and it would continue to do so, added Mr. Mundra.

Dr. P. M. Mathew, Director, Institute of Small Enterprise and Development presented the key findings of the India Micro, Small and Medium Enterprise Report 2015. The Report highlights the state of the MSMEs in India. The Report outlines policy recommendations for the growth of this sector. Among other things, the report recommends National MSME Innovation Policy, export capability enhancement fund, restructuring of start–up programmes, establishing rural services observatory, creating development finance network etc. While the government has introduced MUDRA bank to enhance flow of funds to the MSME sector, a lot needs to be done to enhance support system to this sector, he said.

Mr. Vijay Kalantri, Vice Chairman, World Trade Centre Mumbai raised concern over various issues plaguing the MSME sector in India including lack of timely access to bank credit at reasonable interest rate. Mr. Kalantri expressed that MSMEs in India need guidance on sound human resource management, skill development, marketing, finance and other related areas.

Mr. Kalantri further informed that units in this sector produce around 8,000 products, contribute 40% to GDP, 45% to exports and employ over 60% of labour force in India. This sector is the only sector that can address regional imbalance, Mr. Kalantri opined.

In Photo: From (L-R) Mr. S. S. Mundra, Deputy Governor, Mr. Vijay Kalantri, Vice Chairman, W TC Mumbai and Dr. P. M. Mathew, Director, ISED at the release of ‘India Micro, Small and Medium Enterprises Report 2015’ on November 26, 2015 at WTC Mumbai.

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