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Business News/ News / India/  Job creation in rural areas need of the hour: Nitin Gadkari
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Job creation in rural areas need of the hour: Nitin Gadkari

The priority is also to find a way out for import substitution, Gadkari said
  • He has sought trade minister Piyush Goyal’s nod to export personal protective equipment
  • Union Minister Nitin Gadkari. (ANI)Premium
    Union Minister Nitin Gadkari. (ANI)

    NEW DELHI: Union minister Nitin Gadkari on Thursday said creating employment opportunities in rural, agricultural and backward areas is the need of the hour at a time when the economy is struggling to return to normalcy.

    “We need to innovate, do research and create more jobs in handlooms, tribal areas and that is the need of the hour," micro, small and medium enterprises minister Nitin Gadkari said, speaking at the launch a report prepared by National Institute of Public Finance and Policy (NIPFP) and Council on Energy Environment and Water (CEEW)-- Jobs, Growth and Sustainability: a new social contract for India’s recovery.

    The government will also prepare a list of items imported and exported in the last three year as the first priority is to find a way out for import substitution, Gadkari said, adding that he has sought trade minister Piyush Goyal’s nod to export personal protective equipment (PPE).

    PPE kits witnessed a tremendous rise in demand due to the outbreak of the coronavirus pandemic. Till now India was dependent on imported PPE kits. However, in the last few months, several small businesses started manufacturing these kits in India, taking the country's daily production to 5 lakh kits per day, Gadkari said.

    “We have tremendous capacity now. We don’t need to import PPE kits from China but we can now start exporting it," he said. Similarly, domestic manufacturers have also received orders to export sanitizers.

    Gadkari further said the government has taken a slew of measures in the last few weeks to support MSMEs, including collateral-free, automatic loans for the sector of up to 3 trillion backed by government guarantee, and updated definition of MSMEs, besides expediting payment of pending dues.

    Meanwhile, the report on Jobs, Growth and Sustainability said that sustained revival of MSMEs hinges on addressing the challenge of rampant informality through deep structural and regulatory reforms. This can begin with proper identification of the enterprises and establishing accountability of all stakeholders.

    “It is difficult for central and state governments to provide financial and in-kind relief measures to MSMEs and their workers due to lack of identification and sector-wise association of MSMEs and their employees," it said.

    It proposed creation of a nationwide, centralised digital platform, MISHRII (MSME Information System for Holistic and Real-time Identification, Incentives and Support) that would collect data on the size, distribution, and economic contribution of MSMEs and their workers to the national output, and seed details such as occupation, days of employment and monthly income into their Aadhaar-linked profiles. It has to be linked with the GSTN and income tax databases, and the banking network for direct benefit transfer (DBT).

    It suggested that the government should prioritize clearing the pending payments of small businesses that are long-term suppliers with a good track record on a provisional basis. This will reduce the number of cases that need to be addressed within the 45-day timeline, the report said.

    “The government should mandate the lenders to introduce a mechanism to track the fund utilisation and financial health of the borrowers on a monthly basis, and intervene at the first signs of distress," the report said.

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    Published: 11 Jun 2020, 05:10 PM IST
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