FDI in non-bank lenders must be explored for greater support to MSMEs: Gadkari
In addition, foreign direct investment (FDI) can be explored in non-bank financial corporations (NBFCs) to strengthen them, which will lead to greater support for MSMEs, according to an official statement quoting the minister.
He said a credit rating mechanism can be designed for NBFCs as well to support them, adding that a possibility should be explored to secure foreign investment in the NBFC space.
He said that in a situation where an NBFC has a good credit rating, it may be a good thing if such a company can also attract foreign investment, but a criterion must be set for this.
Regarding the request to extend the interest subsidy scheme for MSMEs, which was in place until March 31, 2020, Gadkari said: “We have already recommended to the Ministry of Finance to extend this scheme. my best to get it approved … If I get it, we will certainly continue this scheme “.
The Minister, who also holds the road transport portfolio, held videoconference meetings with representatives of the Council of Leather Export, the FICCI-‘NBFC Program ‘and the IMC Chamber of Commerce and Industry on the impact of COVID-19 on MSMEs.
Addressing representatives of the Leather Export Council, the Minister said the proposal to establish a leather cluster near the Agra ring road could be submitted.
These industrial hubs can develop smart cities, smart villages and other infrastructure to help people working in Agra’s leather sector. He added that permission from the Aviation Ministry could be explored to use a private airline to send export products.
Gadkari said the need of the hour is to wage the war on the COVID-19 pandemic while continuing economic activity.
The Minister further mentioned that the pandemic can be a blessing in disguise, and we must seize this opportunity. He insisted on the use of PPE (masks, disinfectant, etc.) and advised to maintain social distancing standards.
He mentioned that special attention is needed to reduce imports from other countries. He added that the MSME Ministry is working on two brochures to cover export and import details for the past three years.