FDI can be explored in NBFC to lead greater support for MSMEs: Gadkari

Gadkari says,"FDI can be explored in NBFCs to strengthen them, which will lead towards greater support to MSMEs."

Jun 05, 2020 04:06 IST India Infoline News Service

The Union Minister for MSME, Nitin Gadkari through a video conference said that foreign direct investment (FDI) can be explored in NBFCs to strengthen the sector.

On Thursday, the minister held a video conferencing with the representatives of Council of Leather Export, FICCI-‘NBFC Program’ and IMC Chamber of Commerce and Industry on impact of COVID-19 on MSMEs.

During the interaction, the minister suggested that strengthening of NBFCs, state cooperative banks, district cooperative banks, credit societies etc. is required to extend support to MSMEs during this challenging time.

Thereby, he says, "FDI can be explored in NBFCs to strengthen them, which will lead towards greater support to MSMEs."

Gadkari also acknowledged the much needed  impetus to the MSME sector for dealing with the current economic instability from the government in the Special Economic Package: Aatmanirbhar Bharat Abhiyan.

He explained, the various support measures which have been announced for MSMEs including changes in definition of MSMEs to provide the required support to the sector.

Further, he added, added that definition of medium enterprises has been further revised by increasing the investment and turnover limit basis inputs from related stakeholders.

Additionally, Gadkari also believes that  special focus is required to reduce imports from other countries. 

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