MSME credit rating planned

The Ministry of Micro, Small and Medium Enterprises will raise GST related issues faced by the sector with the Finance Minister to provide some relief to the small companies.

Stressing this, MSME Minister Nitin Gadkari acknowledged “Some problems exist even after the introduction of GST. Whatever your concerns are, I will speak to the Finance Minister about it and try to find solutions for the sector.”

Gadkari highlighted that the government is also planning to introduce a credit rating system for the MSMEs which will help them to raise funds through capital market.

“We are planning for a digital database credit rating so that the industry members with good credit ratings can easily go to the capital markets,” he said at the ‘MSME Ecosystem’ summit, organized by FICCI on the theme – ‘Connecting Dots & Bridging Gaps’ on 3 Dec 2019.

Gadkari also urged the industry to focus in rural and tribal areas for expansion and reducing the cost of production. These areas have both land and manpower available at much lower cost as compared to the urban areas, he added.
“If more industries are set up in these areas, we can effectively address the problems of urban areas. We are making policies on this basis.”
Gadkari emphasized on the need to increase exports and reduce import dependence. “If we want to become competitive in international markets, we must reduce our capital cost as well as logistics cost,” he said.

FICCI President Sandip Somany called for the need to change the MSME definition.

“At present, the definition of Micro, Small and Medium Enterprises (MSMEs) is based on investment in Plant and Machinery for manufacturing MSMEs and investment in Equipment for service sector MSMEs. The need for change in this definition has been necessitated and raised by various stakeholders,” he said. fiinews.com