RBI Deputy Governor S S Mundra has urged lenders to look at the MSME sector as a potential area of growth. Speaking at a ceremony to launch SIDBI’s Certified Credit Counsellors program in Mumbai today, Mr. Mundra said the micro, small and medium enterprises are one of the most important vehicles for inclusive growth, job creation and poverty alleviation.
He informed that an estimated 48 million MSMEs in the country provide employment to 11 crore people, and contribute nearly 45 percent of manufacturing output and around 40 per cent to India’s exports.
RBI Deputy Governor said only 30 percent of the small businesses survive beyond the first decade of their formation, primarily because a large number of MSMEs continue to remain outside the formal financial sector.
Mr. Mundra said that the whole concept of Institution of Certified Credit Counsellor is to bridge the gap between demand and supply in a meaningful way. He added that the counsellors are expected to help MSME promoters in preparing business proposals, financial documents and advise them on suitable credit instruments available in the market.