Government should come up with MSME policy: Report

The government should come out with a policy for the micro, small and medium enterprises (MSMEs) to sustain the upswing in the confidence level among entrepreneurs, says a report prepared by the Institute of Small Enterprises and Development (ISED) based here.

"A new government in power means an upswing in confidence levels, but the challenge ahead is to sustain it. The government should come up with an 'MSME Policy'," said ISED director P.M. Mathew.

The India Micro, Small and Medium Enterprise (MSME) Report, 2014, says the recent policy thrust on 'start-up' and the 'Make in India' campaign has triggered entrepreneurial confidence levels.

Mathew said a "Think MSMEs First" strategy is crucial for correcting the India economy's woes and can be achieved by "strengthening public procurement from these enterprises, give priority to MSMEs in public services(such as electricity, road, and other infrastructure requirements) besides development of a concept of 'Finance Park' that can make banks behave on the basis of a business case in favour of MSMEs".

ISED has an advisory and consultative role with various ministries and the India MSME Report, Mathew said, is the country's only "comprehensive annual record on MSMEs".

The report will be released at Ahmedabad on Oct 11 by Saurabhbhai Patel, Gujarat finance minister, at an event hosted by the Gujarat Chamber of Commerce and Industry (GCCI) in association with the government of Gujarat.