Govt to speedily implement suggestions on MSME

The government on Monday said it will expeditiously implement the recommendations of the Task Force on enhancing credit to the Micro, Small and Medium Enterprises (MSMEs).

"The MSME sector is vital for sustained and inclusive growth. The government will take necessary steps to implement the recommendations of the Task Force on MSMEs," President Pratibha Patil said in her address to the joint sitting of both the houses of Parliament.

She said the steps would include improved credit access, development of infrastructure and strengthening of the district industry centres.

In addition to enhancing credit flow, Patil said the government would also take measures to improve raw material supplies and provide marketing facilities. "We will work to create an environment which encourages investments...including in MSMEs," she said.

The Task Force, chaired by TKA Nair, Principal Secretary to the Prime Minister, presented its report to Prime Minister Manmohan Singh last month.

Among its recommendations are an immediate action plan for providing relief to the sector, which came under severe pressure following the global economic crisis.

The MSME sector, which employs 42 million people, contributes about 45 per cent to India's total manufactured output and close to 40 per cent to the country's exports.