OPINION: Building India’s growth by promoting MSMEs
Monday, December 15, 2014
The clock is ticking fast for action by the Bharatiya Janata Party (BJP) lead government’s action on job-oriented growth. The BJP manifesto also focused on what needs to be done to go beyond the appointment of committees for the Micro Small and Medium Enterprises (MSME) sector as the driver of ‘Make in India’ campaign launched during the first six months of the new government.
“Not all the perfumes of Arabia will sweeten this little hand,” goes the old adage. Over the years, a number of committees were set up to strengthen the micro and small enterprisessector. From the times of Puri and Thombe Committees of 1970s to the Dr KC Chakrabarthy Committee of the Reserve Bank of India (RBI) and the recent PMO Committee of the previous government. None of these failed to mention MSMEs as engines of growth of the economy.
Currently there are 32 national level funds which are in some way related to small enterprise development. Based on the Interim Report of the Committee on Financial Inclusion, the Union Budget- 2007-08 created two Funds of Rs500 crore each called: (a) Financial Inclusion Fund; and (b) Financial Inclusion Technology Fund, both with NABARD. Out of 32 existing Funds, 15 Funds were maintained/ implemented by NABARD and 7 by SIDBI. However, only 13 Funds were related to the MSME Sector.