Details on data bank is compulsory for all MSMEs, says MSME Secy

Delivering the inaugural address at the FICCI-CMSME's sixth annual MSME Summit on the theme 'Propelling MSME Growth

He urged the Micro, Small and Medium Enterprises (MSMEs) in the country to update the details of their enterprises on the MSME data bank.

He also said that the updated data would be used for evolving parameters for the growth of MSMEs in the country.

Jalan said that there was a need to carry out academic work in the space to understand the challenges and issues of the sector. He suggested that FICCI should come out with knowledge papers focusing on the specific concerns of the sector.

Speaking about the financing aspect of the MSMEs, Jalan said that there was a need to carry out research in this area as it has been seen that SME credit by banks was going down. He suggested that for MSMEs, a dedicated financing institute could be established like private sector non-banking financial companies (NBFCs).

Pannuda Boonpala, Director, ILO India, said that In India, the Government's efforts to support the MSME sector through initiatives such as Make in India or Start up India reflect the importance of this sector to national development, and hold great promise.

Highlighting the challenges for MSME sector, Mr. Sanjay Bhatia, President, FICCI-CMSME and Managing Director, Hindustan Tin Works Limited, said that to propel MSMEs there was a need to build an enabling environment for MSMEs.

The Government was already working on a MSME Policy, but he suggested that the MSME Policy document must contain some provision for sector specific dedicated industrial estate/ clusters for MSMEs with the support from State Government. Also, micro enterprises should be exempted from all compliance, inspection and labour laws for certain period.

A guide could be provided to them on the compliances that they need to adhere to in those years. In order to make MSMEs grow vertically, MSMEs should be facilitated with the tax benefits linked to direct employment generated by MSMEs and Start-up businesses. As per policy benefits, MSMEs adopting latest clean and green technologies across sectors should be incentivized by the government. The Government should look for a possible collaboration with institutions which can help MSMEs in their R&D activities.

In his concluding remarks R Narayan, Vice-President, FICCI-CMSME and Founder and CEO, Power2 SME, said that the IT had the power to propel MSME growth with the ability to extend revenue-making opportunities by selling products and services online.

MSMEs could also utilize modern technology and the internet as the medium to reduce procurement costs and thus reduce overall cost of goods sold to improve profitability.

Dr. A Didar Singh, Secretary General, FICCI and FICCI-CMSME, said that the programme 'Make in India' should focus on MSMEs as it is the sector which will generate employment and not the big industries where manpower was being replaced with technology.

He added that the objective of the summit was to create awareness and understanding among the Indian MSMEs on the various schemes and initiatives being taken by the government and private institutions/organizations for the development of MSME sector.