SME Times is powered by   
Search News
Just in:   • Area under oil, gas exploration in India has jumped 76 pc in last 10 years: Hardeep Puri  • MSMEs hold the key towards becoming a Viksit Bharat  • India must build AI models to solve world challenges: Amitabh Kant  • Water level in TN's Mullaiperiyar dam rises sharply after heavy rain, flood alert issued  • Working on 'Act East' resolve with 'Act Fast' approach: PM Modi on Sikkim's statehood celebrations 
Last updated: 14 Sep, 2020  

Industry.9.4.Thmb.jpg Small business confidence

Industry.9.4.jpg
   Top Stories
» MSMEs hold the key towards becoming a Viksit Bharat
» Centre directs e-commerce firms to analyse and remove dark patterns
» Indian stock market opens in green, Sensex above 81,500
» Cabinet okays interest subsidy on farmers' loans for 2025-26
» Restoration of RoDTEP benefits to boost MSMEs, enhance investors’ confidence: Assocham
Bikky Khosla | 14 Sep, 2020

The Union Minister for MSMEs last week said that the government is committed to increase the contribution of the sector to GDP from about 30 percent to 50 percent and to exports from 49 percent to 60 percent. He added that the Centre is also trying to make the best of the sector’s employment generation prowess, with an objective of creating 5 crore additional jobs in the sector which presently employs about 11 crore people. Sounds great, although the current situation seems challenging.

The MSME sector itself seems to be no less enthusiastic about the future. According to a recent survey report, while two-thirds of respondents believe that the present situation is a good opportunity to reformulate their business strategy, half of the total respondents believe that the pandemic will ultimately bring opportunity in the longer term. Over 73 percent of Indian SMEs are confident that they will survive and bounce back post Covid-19. Of course, it sounds quite convincing for a sector that is always known for agility and flexibility.

Meanwhile, according to latest figures, banks have sanctioned loans worth over Rs 1.63 lakh crore to MSMEs and other eligible businesses so far under the Emergency Credit Line Guarantee Scheme (ECLGS). It added that an amount of Rs 1,18,138.64 crore has been disbursed to 25,01,999 borrowers as on 10.09.2020. Additionally, as on August 28, 2020, Rs 25,000 crore has been disbursed under the Rs 30,000 crore Additional Emergency Working Capital Funding for farmers.

However, the confidence does not seem high in the trading community, which comprises nearly 7 crore units, employing more than 40 crore people. According to a report, presently only 7 percent of traders are able to obtain institutional finance. More importantly, 25 percent small shops and businesses in the country, totalling 1.75 crore, are on the verge of closure. This situation is alarming. It seems a comprehensive economic package can give our traders a much-needed relief in this difficult time.

I invite your opinions.

 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
84.35
82.60
UK Pound
106.35
102.90
Euro
92.50
89.35
Japanese Yen 55.05 53.40
As on 12 Oct, 2024
  Daily Poll
Do you think Indian businesses will be negatively affected by Trump's America First Policy?
 Yes
 No
 Can't Say
  Commented Stories
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter