The CII has put forward recommendations for economic growth in which one of the main focus is with regards to the MSMEs sector.
The sector, as per CII, lacks adequate and affordable credit, especially in light of structural reforms like demonetization and GST. However, a few of the recommendations that the CII has made include- the government to share data on financial health with financial institutions to expedite approvals, issuance of debt restructuring norms by RBI for SMEs, NBFCs should be brought into the formal banking structure for credit expansion for MSMEs and regulations for payments to MSME must be enforced with a public platform for MSME complaints.
“There is a need to reduce pressure on working capital of MSME for various reasons such as GST and contract terms. Increase the time, especially for SMEs, for payment of taxes and duties under the GST. Create capital insurance scheme to protect MSME against delayed payments. Encourage alternate sources of lending, especially to MSMEs, like securitisation of exporters’ receivables,” the CII said during the meeting with the Commerce Minister.
— CII (@FollowCII) September 26, 2017