Insight Online News
New Delhi, Dec 31 : As it examines the credit flow to the crucial MSME sector, Parliamentary Standing Committee on Finance has invited suggestions from the public and other stakeholders on the issue, it was reported on Friday.
Chaired by BJP MP Jayant Sinha, the House panel has invited views of all concerned in the sector on ‘strengthening credit flows to the MSME sector’ given the wider implications of the subject on economy of the country.
The suggestions and views submitted by experts, public and other stakeholders would form part of the records of the Committee and would be treated as confidential and enjoy privilege of the Committee.
MSMEs are considered the growth engine of the economy employing almost 11 crore people across various sectors.
Most MSMEs largely depend on private finance for their working capital needs. Even those with access to institutional finance have to pay high interest cost due to their weak balance sheet.
There are 633.88 lakh micro, small and medium enterprises (MSMEs) in the country out of which micro enterprises are 630.52 lakhs (99.47 per cent), small enterprises are 3.31 lakhs (0.52 per cent) and medium enterprises are 0.05 lakhs (0.01 per cent).
The contribution of MSME is around 30 per cent of India’s GDP. The all India export value of MSMEs crossed 11 lakh crore during 2019-20 with a share of 49.75 per cent.