Assocham suggests effective policy for MSMEs in Madhya Pradesh

Industry body ASSOCHAM on Thursday suggested the formation of a high-power committee headed by Minister of Commerce and Industry of Madhya Pradesh (MP), Kailash Vijayvargia to draft an effective policy to accelerate the growth and development process of micro, small and medium industries (MSMEs) operating in various sectors across the state of Madhya Pradesh.

“There is an urgent need to evolve an effective strategy comprising various significant aspects like marketing, working capital management, technological upgradation, inter-linkage amid MSMEs, cluster development, skill development, facilitating micro credit, financial inclusion and revival of sick industrial units in wake of rising land prices,” said a study titled ‘Madhya Pradesh-Enhancing Capacity for Sustainable Growth’, released at the ‘8^th SMEs Sammelan-Enhancing Capacity for Sustainable Growth,’ organized by ASSOCHAM in Bhopal on Thursday.

Suggesting a roadmap to promote and develop state MSMEs, the study recommended a consortium approach to solve the marketing related problems of the MSME sector. The study also suggested to periodically reviewing the activities of ensuring effective financial arrangements for the MSMEs.

There is also ample of scope to develop the entrepreneurial culture and be further improved through specialized training, technical assistance and general consultancy services through professional institutions, it added.

A cluster development approach should be implemented to ensure sustainable growth of industries and this requires major initiatives to develop ancillaries and voluntary organizations to provide necessary linkages. Besides, ASSOCHAM has also suggested for extending external assistance from agencies like UNIDO, UNDP, ESCAP and others.

The study further noted that a comprehensive, district-wise drive must be undertaken by the state government through Directorate of Industries for identifying potentially viable sick units.

Considering there is a gap between demand and supply of micro credit, it is suggested that state government together with leading microfinance companies, non-governmental organizations (NGOs), self-help groups (SHGs) and others should come forward and provide loans to micro-entrepreneurs esp. in handicrafts and handloom sector.