Highlighting the difficulties faced by small and medium enterprises when accessing finances, the Federation of Indian Chambers of Commerce and Industry (FICCI) has said that the investment climate for the SMEs needs to improve through rational policies, better access to finance, and stronger institutions.
In a interactive seminar with SMEs in Ahmedabad, the industry body brought out difficulties faced by SMEs while trying to access financing including due to an incomplete range of financial products and services, regulatory rigidities or gaps in the legal framework and lack of information on both the bank's and the SME’s side.
Speaking at the seminar as chief guest, BB Swain, industries commissioner, Government of Gujarat presented a snapshot of Gujarat’s status of SMEs and assured the participants that under the aegis of the present industrial policy which is primarily inclined towards SMEs, the government is very proactively keen to facilitate and enhance the productivity of this sector.
Similarly, Ketan Patel, Chairman, FICCI-Gujarat State Council’s SME Committee and CMD Troikaa Pharma said, “Gujarat has been identified as an entrepreneurial hub of India. Even Troikaa has grown from being a micro to small to medium to now a large pharma company. However, inclusive prosperity rests on the shoulders of SMEs. Nevertheless, adequate and timely finance to this sector has been a critical issue and a top agenda for the banking and financial sector.”
On the other hand, Geeta Baitmangalkar, senior manager, Export Credit Guarantee Corporation of India Ltd (ECGC) discussed various services being offered by ECGC and encouraged SMEs to take more advantage of the same to promote their exports while minimizing the risks. ECGC’s SME policy stresses upon less administrative cost and a rationalized premium, she added.
Meanwhile, Patel said that the times have changed and that the public sector banks are as keen to provide credit as much as the corporate ones.
“What is required for the entrepreneurs to learn and understand is the intricacies of finance and convince the financer about their captive strength and growth potential. Also, the financial sector needs to become broad based, competitive, and efficient to provide SMEs with alternative and innovative products, competitive rates, and efficient services to make their investments viable,” Patel added.
