To boost Micro, Small and Medium Enterprise (MSME) sector in India, the central government is cosidering to contribute 10% of funds to the small companies looking to raise equity capital through capital markets, Union MSME Minister Nitin Gadkari said.
“The government will contribute 10 per cent to the companies who enroll themselves in the capital market and stock exchange to raise equity,” Gadkari said at 16th Global SME Summit in Delhi.
The Minister said his Government’s target is to increase MSME’s present share of 29 per cent of GDP to 50 per cent in next five years and raise its export contribution from 49 per cent to 60 per cent . To achieve these targets logistics, power and capital cost will need to be reduced.
For cheaper capital, the Ministry is in talks with ADB, KfW and World Bank for their credit line. 200 SMEs are registered on the stock exchange, and the Minister is urging more companies to register.
The problem of delayed payments to MSMEs is also being looked into and Gadkari and added that the UK Sinha Committee Report will soon be implemented.
Calling for domestic and foreign investment and collaboration in the sector, Gadkari said that the MSME sector in India has tremendous potential to push growth and generate employment. He said the government’s priority is for integrated development of the rural and agro-based enterprises along with the urban-based enterprises.