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LATEST NEWS UPDATES | Govt releases draft MSME policy; proposes 8 ‘action areas’ to overhaul the sector -Sandeep Soni

Govt releases draft MSME policy; proposes 8 ‘action areas’ to overhaul the sector -Sandeep Soni

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published Published on Feb 16, 2022   modified Modified on Feb 17, 2022

-FinancialExpress.com

Ease of Doing Business for MSMEs: The government has highlighted eight “specific action areas” to “build a vibrant eco-system for the rapid growth of the MSME sector.”

Ease of Doing Business for MSMEs: The MSME Ministry has released the draft National Policy for Micro, Small and Medium Enterprises (MSMEs) in India, proposing multiple measures to promote competitiveness, technology upgradation, cluster and infrastructure development, procurement of MSME products and dedicated credit support. India doesn’t have an MSME policy till date, however, efforts have been underway since around 2015 when the One Member Committee under the chairmanship of former Cabinet Secretary Dr Prabhat Kumar was constituted by the Ministry of MSME to help in formulating the policy. The committee had submitted its recommendations in January 2017.

A draft consultation paper for the MSME policy was released before 2017 as well. With the new draft floated last week by the Office of the Development Commissioner (DC-MSME) seeking feedback and suggestions by February 28, 2021, the government has highlighted eight “specific action areas” to “build a vibrant ecosystem for the rapid growth of the MSME sector.” These areas included:

Intergovernmental Role and Responsibility across national and state governments and district level authorities. Among the measures suggested for the central government, the draft sought developing Standard Operating Procedures (SOP) for registration of MSMEs and to review the framework for regulating and funding arrangements covering the Reserve Bank of India, SIDBI, other public and private lenders in line with incentives to promote competitive enterprises. For state governments, the draft opined developing State Policy on MSME in line with the national policy and measures for encouraging enterprises to register as MSMEs.

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FinancialExpress.com, 16 February, 2022, https://www.financialexpress.com/industry/sme/msme-eodb-govt-releases-draft-msme-policy-proposes-8-action-areas-to-overhaul-the-sector/2435761/


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