Page 25 - Banking Finance December 2021

COVER STORY

INCENTIVE SCHEMES

FOR GROWTH &

DEVELOPMENT OF

MSME SECTOR AND

THEIR

EFFECTIVENESS

M icro, Small and Medium Enterprises form a entrepreneurship have made very good progress in the last

few years, but creating the environment for the next stage
vital component of the Indian Economy. The
of their growth is a task yet to be accomplished.
Government and Reserve Bank of India have
taken a number of measures from time to
time to support this sector. A number of committees The success of Indian economy lies in the success of MSMEs
appointed by the Government/RBI have identified issues and how effectively we are providing handhold support in
and made recommendations in the past. Many of these an environment where resources are lacking. The research
recommendations have guided different policy initiatives. ended up in revealing certain facts that will definitely help
in mitigating the factors that are acting as a hindrance in
However, MSMEs continue to face challenges of successful implementation of the schemes.
formalization, access to knowledge services, access to timely
and adequate finance, improving competitiveness, Ever since the onset of the financial crisis, the global
availability of skilled man-power, access to latest technology economy has been struggling to revive itself and achieve a
and marketing. The MSME sector is yet to benefit from the healthy growth rate. The global growth rate for last year
advances in digitization, which can substantially reduce the and this year are projected at 3.20% in 2019 and 3.50% in
cost and time for this sector. SHGs and rural 2020.

About the author But compared to this, India's GDP continues to grow at a
fast pace, outstripping major world economies. According
Kalicharan Das to IMF, India is projected to grow at 5.80% for the fiscal
Senior Manager, Faculty year 2020.
Union Bank of India
Staff Training Centre, Bhopal Without any dispute, MSMEs are one of the key drivers

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