Finance and Development : The MSME Story

Book ID: ISED-222

Book Type: Soft Copy

Description

"Finance is undoubtedly a necessary, but not a sufficient condition for MSME sustainability. India has pioneered several experiments in ensuring credit in an inclusive manner. While these social aspects of finance are crucial, it is important to note that, there are several non finance aspects that are critical and pressing in ensuring sustainability of these enterprises. Despite recommendations of various expert committees, as also official pronouncements relating to MSME finance, there still lacks an integrated approach involving credit and non-credit interventions.. It is on top of such a dual system that institutional platforms attempt to offer solutions. The broad basing of micro lending, especially through the new scheme MUDRA, is an important step to forward. But effective knowledge system that can address the challenges of MSME development in the country is a critical gap today. Credit Guarantee systems and Business Development Services need a fresh look, and needs reforms"