India’s Commerce and Industry Minister, Piyush Goyal, has announced groundbreaking measures to support the nation’s micro, small, and medium enterprises (MSMEs). On Thursday, Goyal revealed the government’s plans to offer concessional land rates for MSMEs setting up businesses in newly developed industrial townships across the country. This initiative is designed to significantly reduce the initial financial burden faced by MSMEs, encouraging their growth and enhancing economic expansion.
In addition to land rate concessions, the government is exploring alternative financing models to address the ongoing challenges MSMEs face in securing capital. Goyal’s statement acknowledges the pivotal role MSMEs play in India’s economy, aiming to equip them with the necessary resources for success. He also emphasized the need for collaboration between the government and MSMEs, urging businesses to voice their credit concerns, ensuring prompt action in response.
Speaking at an Assocham event, Goyal highlighted the government’s ongoing efforts to streamline business processes, reduce regulatory obstacles, and decriminalize laws affecting MSMEs. These actions are part of a larger strategy to create a more business-friendly environment that fosters innovation and growth while reducing bureaucratic hurdles. He also called on banks to be more responsive to MSME financing requests, stressing the importance of responsible borrowing and repayment for sustainable credit access.
This initiative builds on previous government steps to increase equity investments and broaden financing options for MSMEs, particularly those operating in the informal sector. The government’s strategy is comprehensive, supporting MSMEs at every level of the economy.
Moreover, Goyal confirmed the cabinet’s approval for twelve new projects under the National Industrial Corridor Development Programme (NICDP), which includes industrial parks and townships in areas like Rajpura-Patiala (Punjab) and Gaya (Bihar). These new developments will provide ample opportunities for MSME expansion. Goyal committed to ensuring space for MSMEs in all 20 planned NICDP townships, demonstrating the government’s commitment to supporting infrastructure for long-term sectoral growth.
Addressing concerns raised by the Federation of Indian Export Organisations (FIEO) regarding the lag in export credit growth, Goyal’s announcement is a vital step to counter the slowdown in export financing. Factors like rising commodity prices and increased freight costs have contributed to the decline in export credit, and Goyal’s measures aim to mitigate these challenges.
Additionally, Goyal urged industry leaders to report any instances of corruption or bureaucratic inefficiency. He emphasized the importance of accountability in government processes, ensuring transparency and the smooth execution of proposals.
In conclusion, Goyal linked the government’s initiatives to broader societal benefits, stressing that improving the ease of doing business directly contributes to enhancing the quality of life for all citizens, highlighting the interconnectedness of economic development and societal progress.
