The significance and contribution of MSME sector cannot be ignored since it is the backbone of the industrial scenario of the country, Cll official said.
In the country’s GDP, MSME contribution was 40 per cent in exports and 45 per cent in manufacturing, said Niraj Kant, CII President of Jamshedpur Zonal Council.
Two to three million MSMEs in the country are working directly and indirectly to provide employment to more than 100 million people, a seminar organized by the CAI on Monday, to the awareness session on SMEs.
Referring to the difficulties faced by MSME at present, he said, the biggest concern of this block was that it has no access to 90 per cent of capital and organized financial sector, although MSME has 30-30% of the country’s million jobs in the country MSME does not have adequate collateral, which is demanded by banks to reach for loans, he said. MSMEs are also dependent on private lenders and unorganized financial sector in India. This small pool of financing providers often exclude many potential and progressive MSMEs from operation, Kant said.
However, the financial institution has been successful in creating the speed and has made successful progress to overcome this gap, the CII official said. Another concern for the Segment was that the export was covered, which should be addressed immediately, Kant said. Expressing the confidence that MSME has extensive capacity and competitiveness to run business, Kant urged the entrepreneur to change his mentality, because nowadays it is very scientific, systematic and system-oriented, which was done several decades ago.