Govt open to exploring alternative financing models for MSMEs: Piyush Goyal
- Goyal said he will examine the concessional rate to the MSMEs to take land and set up businesses in upcoming industrial townships.
Commerce and industry minister Piyush Goyal on Thursday said the government is open to offering concessional rates for micro, small, and medium enterprises (MSMEs) setting up businesses in industrial townships across the country. He also highlighted the exploration of alternative financing models to support these enterprises.
Speaking at an event organized by industry body Assocham, Goyal emphasized the government's efforts to simplify business processes, reduce compliance burdens, decriminalize laws, and create a supportive environment for MSMEs.
"If you (MSMEs sector) get that specific feedback, then we'll be able to take it up with the bankers," Goyal said, urging the industry to share issues related to accessing credit with the government.
On 23 April, Mint reported that the central government is exploring measures to boost equity investments in MSMEs and expand financing opportunities, particularly for businesses in the informal sector.
In August, the cabinet approved 12 new projects under the National Industrial Corridor Development Programme (NICDP) to establish industrial parks and townships in locations such as Rajpura-Patiala (Punjab), Gaya (Bihar), Dighi (Maharashtra), Palakkad (Kerala), Agra and Prayagraj (Uttar Pradesh), Zaheerabad (Telangana), Orvakal and Kopparthy (Andhra Pradesh), Jodhpur-Pali (Rajasthan), and Khurpia (Uttarakhand).
"I will be happy to look at providing space (for MSMEs) at all of these 20 townships," Goyal said. “I am also happy to submit that we will examine the concessional rate to the MSMEs to take land and set up businesses there.”
Highlighting financing challenges, Goyal pointed to several government-backed schemes that promote and provide guarantees for MSME financing.
“If every banker was to be a little more responsive to actually make that financing available, I don't think they would have that great of difficulty especially if borrowers were little more responsible about paying back the money that they borrow," he said.
The Federation of Indian Export Organisations (FIEO) has noted that export credit growth has lagged behind the country’s rising exports. According to FIEO, export credit declined between March 2022 and March 2024 due to rising commodity prices, increased freight costs, and the Red Sea crisis, which led to longer voyage times and delayed payments.
Goyal also called on industry stakeholders to act as whistleblowers in cases of corruption, urging them to raise concerns about delays in file movement or action on proposals.
"There is a point about dealing with corruption amongst the channel. If an officer is not moving a file quickly enough, you need to raise your voice. If your proposal is not being acted upon, you will have to raise your voice, but on the merits of the case," he said.
Also read | Centre likely to maintain capex push in FY26 to aid economic growth amid sluggish state spending
He concluded by linking the government’s initiatives to broader societal benefits. “At the end of the day, as we take steps towards ease of doing business, those steps automatically lead to ease of living for all of us,” Goyal added.
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First Published:5 Dec 2024, 07:59 PM IST
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