MSME sector which contributes
significantly to the Indian economy particularly in terms
of export and employment is facing severe financial crunch.
The capital inflow for growth of the sector is much below the
expectation. As a fall out of it the sector is languishing. This was
observed by Balasore MP and member of standing committee on industry RK Jena ,
in a meeting of ASSOCHAM (The Associated Chambers of Commerce and
Industry of India ) held recently in Delhi .
Deliberating on a topic in the meeting ’11
International summit SEZ and Industrial parks’ , Jena said when
Britishers entered into India the contribution of our
country to world market was about 45 percent , but after 200 years of
rule when they left (India) the contribution reduced drastically
to mere 2 percent as the small and medium industry sector witnessed a
terrible neglect .
He observed that although the successive governments had made
effort to revive the MSME sector, which employs about 94 percent of work
force of unorganized sectors, yet failed to yield any
substantial result due to various factors .One of the major
reasons for plugging of MSME sector is
unavailability of capital . The shortfall in the flow of credit is
around Rs 32.5 trillion in the sector, as per various World Bank reports,
“About two and half a decade ago although
liberalization has taken place in India and several reforms were
affected yet unfortunately no tangible change is
witnessed in the MSME sector. The liberalization leverage has been
availed by the corporate sector but MSME sector continue suffer with
the bottle neck of credit inflow. For revival of the MSME
sector the need of hour a better legislative and regulatory environment
besides finance and market,” said Jena.