Sitharaman, Gadkari consult small firms on boosting access to credit

  • Tuesday’s meeting was also attended by senior officials including revenue secretary Ajay Bhushan Pandey
  • The non-bank sector is a key source of funding for the MSME and housing finance sectors

Gireesh Chandra Prasad
Updated6 Aug 2019
A file photo of finance minister Nirmala Sitharaman.
A file photo of finance minister Nirmala Sitharaman.(Photo: PTI)

New Delhi: Finance minister Nirmala Sitharaman and her cabinet colleague transportation and small enterprises minister Nitin Gadkari on Tuesday sought suggestions from micro, small and medium enterprises (MSMEs) on ways to improve their access to credit.

The consultation is part of efforts to address the economic downturn taking suggestions from representatives of a host of industries and the banking sector that the government had announced last week. Sitharaman had already met chiefs of state owned and private banks on Monday.

Credit availability to small businesses is crucial to economic growth as a significant part of value addition in the manufacturing sector takes place in the MSME sector, which also is a large job creator in rural and urban areas.

Tuesday’s meeting was also attended by senior officials including revenue secretary Ajay Bhushan Pandey. The government intends to arrest the economic slowdown by boosting consumption, improving liquidity to businesses and to the non-bank sector and by reforming labour laws. The non-bank sector is a key source of funding for the MSME and housing finance sectors.

The government has been taking steps to improve access to credit to small business for some time now but companies feel more could be done.

“Despite the emphasis given by the government and the RBI on lending to the MSME sector, bank lending to this sector in FY19 has been way below target. MSMEs are not getting funding properly. Also, many large companies are struggling. Since MSMEs are dependent on large companies for business, it impacts them as well,” said Chandrakant Salunkhe, founder and president of the SME Chamber of India.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
HomeNewsIndiaSitharaman, Gadkari consult small firms on boosting access to credit

Most Active Stocks

Indus Towers

334.00
10:29 AM | 19 JUN 2024
-9.9 (-2.88%)

Bharat Electronics

309.30
10:26 AM | 19 JUN 2024
-8.95 (-2.81%)

HDFC Bank

1,658.00
10:24 AM | 19 JUN 2024
49.25 (3.06%)

Tata Steel

180.05
10:25 AM | 19 JUN 2024
-1.1 (-0.61%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Alok Industries

29.50
10:27 AM | 19 JUN 2024
2.15 (7.86%)

Jubilant Ingrevia

554.95
10:16 AM | 19 JUN 2024
39.85 (7.74%)

Triveni Engineering & Indus

413.75
10:29 AM | 19 JUN 2024
28.85 (7.5%)

Shree Renuka Sugars

51.22
10:29 AM | 19 JUN 2024
3.47 (7.27%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    73,281.00-238.00
    Chennai
    72,711.00-1,095.00
    Delhi
    73,495.00-24.00
    Kolkata
    73,566.00191.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.75/L0.00
    Kolkata
    103.94/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsPremiumInstant LoanGet App