Page 39 - Banking Finance July 2020

ARTICLE

MARKETING

STRATEGIES

FOR MSME

BUSINESS

BY BANKS

Importance of MSME Sector The MSME sector in India is exceedingly heterogeneous in
terms of size of the enterprises and variety of products and
The Micro, Small and Medium Enterprise sector is crucial
to India's economy. Micro, Small and Medium Enterprises services and levels of technology employed. However, the
(MSMEs) are amongst the strongest drivers of economic sector has the potential to grow at a faster pace. To provide
development, innovation and employment. The MSME impetus to the manufacturing sector, the recent National
sector also contributes in a significant way to the growth of Manufacturing Policy envisaged raising the share of
manufacturing sector in GDP from 16% at present to 25%
the Indian economy with a vast network of about 63.38
by the end of 2022.
million enterprises. The sector contributes about 45% to
manufacturing output, more than 40% of exports, Need for MSME Leads Generation:
contributing 29 % of the GDP while creating employment
for about 111 million people and manufacture around 8,000 As per the data published in the past, approximately 10 %
quality products for the Indian as well as International of the credit requirement of MSME units is met from the
markets, which in terms of volume stands next to institutional finance and remaining avail the finance mainly
agricultural sector. from unorganised sources. Thus there is vast potential in
financing to MSMEs by Banks.

About the author The processing of MSME credit proposalsis now done at
Central Processing Cells (CPCs) in most of the banks to ensure
uniform quality of processing and reduce the turn around
Janardan Gadi time for the growth of MSME Business. These CPCs are
Faculty, Chief Manager equipped with experienced processing officers who have
Union Bank of India Staff College,
Bengaluru capacity to process the proposals quickly and the functioning
of CPCs have been well established and stabilised in most of

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