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Step in the right direction to leverage Indian MSME Sector: CII

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Capital Market
Last Updated : Apr 10 2015 | 5:28 PM IST

Welcomes the launch of MUDRA Bank

CII hails the Government of India for the launch of the MUDRA bank with a corpus of Rs.20,000 crore to extend credit of up to Rs.10 lakh to small businesses and regulate micro-finance institutions, to promote their growth, add to the country's output and create jobs is the step in the right director to leverage Indian MSME Sector especially in the Semi Urban and Rural India.

Mr Sumit Mazumder, President - CII, hailed the vision of Hon'ble Prime Minister of India who was keen in making this dream of Indian MSME sector a reality by launching a dedicated bank for MSME sector - MUDRA Bank. This bank will spur the growth of Indian MSME Sector and help them increase their contribution to Indian GDP from its current level of 38%. Mr Mazumder also stated the launch of this bank will greatly increase the confidence of young, educated or skilled workers who would now be able to aspire to become first generation entrepreneurs; existing small businesses, too, will be able to expand their activities.

Mr Mazumder also stated that, the Indian MSME sector is capable of growing at a healthy double digit rate, providing the necessary impetus for our national GDP to achieve high single digit growth in the next 2 years. The initiative will also lay down the norms for responsible financing practices for micro-finance institutions so that the small businesses do not face hardship over indebtedness, while getting a fair environment for repayment felt Mr Mazumder.

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First Published: Apr 10 2015 | 4:12 PM IST

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