Institute of Small Enterprises and Development (ISED)has mooted a finance park for meeting the financial requirements of the small and medium enterprises in the country
Institute of Small Enterprises and Development (ISED), a Kochi-based think-tank, has mooted a finance park for meeting the financial requirements of the small and medium enterprises in the country, as reported by The New Indian Express.
The proposal was part of the recommendations submitted by the ISED to Prime Minister Narendra Modi. Finance Park is an integrated concept, can make the banks find a ‘business case’ in financing MSMEs, while helping them bring down the cost of credit, through a ‘collective efficiency’ concept.
The institute wants to set up the park to replicate the success story of MSMEs in Gujarat.
“Inadequacy of credit flow to the MSME sector is a major problem around the world, especially in the context of economic crisis. The sector is reeling under acute credit crunch now. Governments in most countries come out with relief packages that are of a short-term nature. Sustainable strategies and institutional arrangements are the need of the hour. The solution lies in making the banks approach MSMEs, rather than entrepreneurs run from pillar to post,” PM Mathew, Director, ISED told Indian Express.
The Gujarat story of MSME development has several positive aspects which deserve detailed analysis from the point of view of strategy development. The MSME performance of a state is often measured in terms of visibility in relation to employment, number of units, and their regional distribution.
“The recent policy thrust on ‘start-up’ and the ‘Make India’ campaign triggers entrepreneurial confidence levels and calls for the revival of MSMEs in Kerala as well,” said Mathew.
He added that a ‘Think MSMEs First Strategy’ is crucial for correcting Indian economy’s woes.