Kerala is well placed for a revolution in MSME sector, he said, adding that the state should leverage its high level of education and capabilities.

Medium and Small Enterprises (MSME) are critical to economic development and a ‘level playing field’ should be ensured for them, RBI Governor Raghuram Rajan today said.

“We need to create many more jobs and that is one of the most important things in the country in the coming years. MSMEs are very important source of job creation,” he said at a India MSME Summit at Thiruvananthapuram.

Job creation really takes off not when they are small, but when they grow, he said, adding that it is important to create conditions for the growth of MSMEs, not just for startups, but also to grow in effective ways.

Kerala is well placed for a revolution in MSME sector, he said, adding that the state should leverage its high level of education and capabilities. Quoting a Chinese professor, he said differences in the vigour of MSMEs in China and India have to do with the level of educational differences between the two countries. “Kerala, anywhere in India is well positioned with the educational level to go forward. Kerala is a great place for furthering revolutionising MSMEs,” he said.

More entities will create more competition. Giving the example of banana chips, he said a new way of making them would be tremendously useful for the country, both in terms of spreading it and improving productivity.

Raghuram Rajan said that an exclusive web portal should be set up as an intermediary between banks and micro small medium enterprises (MSMEs) to tackle hassles faced by entrepreneurs in accessing credit.

Source: DNA and Deccan Chronicle