Issues concerning MSMEs’ access to credit, banks’ reluctance to lend without collateral security, soaring compliance costs, and GST refunds were highlighted during the meet.
New Delhi: Aimed at gauging the sentiments of MSME fraternity, Finance Minister Nirmala Sitharaman, along with MSME Minister Nitin Gadkari met representatives from the MSME sector today.
As per the sources, among the major sectoral concerns highlighted by the MSME representative related to the need for broadening of MSMEs’ access to credit, banks’ reluctance to lend without collateral security, soaring compliance costs, and issues related to GST refunds, among others.
For enhancing MSMEs capacity building, many MSMEs pitched for creation of special industrial clusters across India to produce import- substitution items. They also urged the government to offer some kind of incentives for firms operating out of such conclaves. The government is said to have assured the industry representatives that it will look into this demand.
With regard to existing bottlenecks faced in availing GST refunds, the government also assured the sector to streamline the process further, sources said.
While noting the concerns raised on growing levels of compliance, including its increased cost being incurred by MSMEs, the government vowed to look into all the compliance-related requirements of MSMEs across ministries in order to minimise its ill-effects.
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