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Startup India: Top four major steps Modi government can take to boost MSMEs

From improved financing to improved image, MSMEs have served up a list of demands that can help them to a large extent, say industry insiders.

Startup India: Top four major steps Modi government can take to boost MSMEs
Industry insiders expect NDA-II to frame policies and drive programs to help Indian MSMEs and start-ups, take their rightful position in the global economy. Photo: Reuters
By Asit Manohar
Updated: Tue, May 28, 2019
11:21 pm
New Delhi, ZeeBiz WebDesk
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Welcoming Narendra Modi in his second stint as Prime Minister of India, the micro and small enterprises (MSMEs) have urged the NDA government to take a few steps that can not only help MSMEs and Startups to prosper but the whole national economy. From improved financing to improved image, they have served up a list of demands that can help MSMEs to a large extent, say industry insiders.

Sameer Vakil, Cofounder & Chief Executive Officer at GlobalLinker said, "NDA-I had worked to address many fundamentals of the economy and business environment - introducing GST and rationalizing rate structures, demonetization, ease of doing business, amongst others. I would expect NDA-II to frame policies and drive programs to help Indian MSMEs and start-ups, take their rightful position in the global economy."

Vakil said that below four majors steps an help Indian Startups and MSMEs to get a boost and this will in turn help them to contribute to the national economy in a big way. Here are the top four ways that Modi government can take to boost the sector:

1] Improved On-boarding - Encourage new age businesses to be set up and remove business irritants (angel tax, new company registration process, sector incentives and incubation services) etc.
 
2] Improved Financing - Improve access to financing and credit cycles for SMEs (standardize processes and timelines for disbursement)

3] Improved Image - Create a better image of SMEs globally in traditional trades, new age technology-led solutions, services and Agriculture sectors)

4] Economies & Efficiencies - Develop common infrastructure components for improved performance and lower costs (similar to the IDCs, SEZs in keeping with requirement for high focus priority sectors).

These steps can be one of the major topics of discussions when the new minister for MSME takes charge.