Cooperative Banks Soon to Deliver MSMEs Credit Guarantee Scheme

Even after the willingness of the top leadership, it is realised that a lot has to be done around connecting with MSMEsfor ensuring the smooth delivery of MSME credit support. On the lines of further improvising the MSME credit ecosystem, the central government is considering to include Cooperative banks as lenders for Micro, Small and Medium Enterprises (MSMEs) under Emergency Credit Line Guarantee Scheme (ECLGS).

Nitin Gadkari, Union MSME Minister in a webinar have made a very clear statement by adding, ''Cooperative banks that are not included as a member lending institution under the Emergency Credit Line Guarantee Scheme (ECLGS) will be included as lenders for MSMEs, under a scheme being discussed in consultation with the RBI.”

While urging the states to release payments due to MSMEs within 45 days, Gadkari said, “this will help bring liquidity, which will accelerate the economic growth of the country.

The minister emphasized that special focus towards export enhancement is the need of the hour, and there is also a need to focus on import substitution to replace imports with domestic production. He further urged the industry to identify the sectors heavily reliant on imports, particularly from China, and look for substitutes towards indigenous production to make India Atmanirbhar.

He further stated that the government aims to increase MSMEs’ contribution to 50 per cent of GDP and share of exports to 60 per cent which will help the sector create 50 million jobs in the next five years.

“The government is formulating a special policy to generate employment in the rural areas and aims to increase the turnover of village industries and encourage medium scale units such as ago and food processing industries, handloom, and handicrafts,” he added.

On the other hand, Jagadish Shettar, Minister of Medium & Large-Scale Industries, Government of Karnataka said, “The new Industrial policy of the Karnataka State Government for 2020-25 will be pro-industry and aligned with reshaped reforms.”

Highlighting that Karnataka is a conducive place for industries to grow, he said that the state provides the right infrastructure support across industries, and the reforms by the government of India will provide the much-needed support to the MSME sector.