Piyush Goyal Directs SIDBI, CGTMSE For Faster Processing Of SME Loans
Piyush Goyal, Minister of Commerce and Industry has instructed the Small and medium enterprises (SME) sector manufacturers to produce high-quality goods and follow international standards. The aim is to make exports from the SME sector a part of the global trade chain.
Commerce and Industry Minister Piyush Goyal has directed SIDBI and the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to set up a framework to facilitate faster processing of loans to SME units.
Earlier in May 2019, the Small Industries Development Bank of India (SIDBI) reported a 28.22 per cent increase in net profit, amounting to Rs 519.36 crore for the March quarter.
In order to avoid the working capital of SME units getting blocked, the issue of delayed payments was examined and the possibility of big companies making full payment to SMEs against delivery was encouraged. The minister assured the sector that the government would give all support and help in the development of manpower.
"The most important issues of the discussion included the problem faced by SME units in accessing credit from banks, delay in payments from PSUs 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," Mr.Piyush Goyal said.
Many issues pertaining to the Micro, Small and Medium Enterprises (MSME) sector were put up for discussion with the minister by MSMEs through industry chambers including the Confederation of Indian Industry (CII).
The MSME sector contributes around 6.11 per cent of the manufacturing GDP and 24.63 per cent of the GDP from service activities with 63.4 million units throughout the country. It accounts for 45 per cent of manufacturing output, more than 40 per cent of the country's exports and also employs over 100 million people of the country.
