The Reserve Bank has said the expert committee on the MSME sector, set up in January under the chairmanship of former chairman of Sebi UK Sinha, has submitted its report to the governor Shaktikanta Das. The eight-member committee was set up to review the framework for the micro, small and medium enterprises, and suggest long-term solutions for the economic and financial sustainability for the sector also to study the impact of the recent economic reforms on the sector and identify the structural problems impacting its growth.
- The committee held its deliberations including consultations with various stakeholders and has submitted its report to the governor.
- The central bank has not shared the report. One of the objectives of the panel was to examine the factors affecting the timely and adequate availability of finance to MSMEs.
- The members of the committee included development commissioner for MSME Ram Mohan Mishra; joint secretary at the department of financial services Pankaj Jain; SBI managing director PK Gupta; ICICI Bank executive director Anup Bagchi; IIM-Ahmedabad professor Abhiman Das; Ispirit Foundation founder Sharad Sharma and Dvara Trust chairperson Bindu Ananth.
- India’s Micro, Small, and Medium Enterprises (MSMEs) base is the largest in the world after China.
- The sector provides a wide range of services and is engaged in the manufacturing of over 6,000 products – ranging from traditional to hi-tech items.
- Given the government of India’s latest ‘Make in India’ push, along with a significant jump in the FDI flows, the Indian MSMEs sector is poised for rapid growth and integration with major global value chains.
- The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, governs the coverage and investment ceiling of MSMEs in India.
- According to the Act, there are two categories of MSMEs in the country – manufacturing and services.