Swaminathan J, Deputy Governor, Reserve Bank of India noted in a speech that the journey of Indias economic transformation cannot be complete without the robust development of MSME sector. MSMEs are not just the backbone of economythey are the engines of growth, innovation, and employment. However, for these enterprises to truly thrive and scale up, the financial sector must step up with innovative solutions, sensitivity, and a forward-looking approach. As businesses transition from an informal to a formal entity, they encounter significant rise in regulatory obligations and cost of compliance. Sometimes these requirements involve the interpretation of laws, knowledge of compliance procedures, etc. Instances of difficulties with financing entities are not uncommon as the MSMEs attempt to scale up. The Government and Regulators have been taking various initiatives to reduce difficulties and ease the cost of doing business. This is not just about providing credit; its about enabling these enterprises to compete globally, drive exports, and contribute to the nations goal of becoming a developed economy by 2047, he opined.
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