The Government has urged the SME sector manufacturers to produce high quality goods following international standards, so that exports from the SME sector may become a part of the global value chain. This was stated by the Commerce and Industry Piyush Goyal while, discussing with the Micro Small and Medium Enterprises, MSME associations on various industry issues in New Delhi.
He said the sector has better adaptability to cater to the export market due to its smaller size and can adapt to market change sooner.
The Ministry also directed Small Industries Development Bank of India (SIDBI) and the Credit Guarantee Funds Trust for Micro and Small Enterprises (CGTMSE) to set up a framework that will enable them to process loans to SME units faster and also provide insurance cover to the SME exporters.
The other important issues that were discussed in the meeting included the problem faced by SME units in accessing credit from banks, delay in payments from Public Sector Units and Government departments, the issue of GST refund, the dearth of skilled manpower in the SME sector and the issue of differing wages in States across the country.
On the issue of delayed payments, Minister examined the possibility of big companies making full payment to SMEs against delivery so that working capital of SME units are not blocked.
In order to mainstream the 8 million Indian women who have started and are running their own businesses, Minister directed that the Government e-Marketplace may handhold the women led SMEs and onboard these enterprises on the GeM portal.
Mr Goyal has assured the SME sector that the Government will give all support and help in the skilling of manpower required for the sector.
The MSME sector in India employs over 100 million people and accounts for 45% of manufacturing output and more than 40% of the country’s exports.
With 63.4 million units throughout the country, MSMEs contribute around 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities.