Need to reduce cost of capital, logistics in MSME sector: Gadkari

Last Updated: Wed, Sep 25, 2019 15:53 hrs
Nitin Gadkari (ANI photo)

New Delhi [India]: Minister for Micro, Small and Medium Enterprises Nitin Gadkari has said that reducing the cost of capital, logistics, and power was crucial for making the Indian MSME sector globally competitive.

The minister, who inaugurated the 16th Global SME Business Summit 2019 here on Tuesday, called for domestic and foreign investment and collaboration in the sector.

He said MSME sector in India has tremendous potential to push growth and generate employment.

Gadkari said the government's priority is for integrated development of rural and agro-based enterprises along with the urban-based enterprises.

Opportunities are abound in development of honey, bamboo, textiles, bio-fuels, water transport, fisheries, dairy, food processing in the rural areas and ancillary units of defence, railways, highways, waterways, and other industries in the urban areas, he said, and appealed to investors to come forward for investment and collaboration.

The Summit is organized every year by the Ministry of MSME and Confederation of Indian Industries (CII). The theme this year is 'Making Indian MSMEs Globally Competitive'.

The Minister said the government's target is to increase MSME's present share of 29 per cent of GDP to 50 per cent in next five years and raise its export contribution from 49 per cent to 60 per cent. To achieve these targets, the cost of logistics, power and capital will need to be reduced, he said.

Gadkari said the Ministry will soon launch a new e-commerce website 'Bharat Mart' to enable MSMEs to sell their products in local as well as international markets.

Speaking on the occasion, Arun Kumar Panda, Secretary, MSME said the Ministry was in the process of developing a digital MSME portal which will work as a virtual meeting place for all stakeholders of the sector.