The Indian government is formulating policy on credit ratings of MSMEs. To increase business, liquidity and transparency devising a policy on credit ratings for MSMEs is essential.
New Policy on Credit Rating of MSMEs
Union Minister, Nitin Gadkari announced the recent innovative formulation undertaken by the government. While addressing the International Women’s Entrepreneurial Challenge Foundation, he mentioned that the new policy on credit ranking of MSMEs is already preparing the groundwork. This policy would help investors and several other customers make an informed decision based on the credit position.
Gadkari highlighted that the government is creating a digital statistics-based credit grading system. Performance based ratings will consequently provide information about MSMEs.
Focusing on MSMEs
Gadkari recently stated that over 49% of India’s total export was subsidized by MSMEs. Additionally, urged MSMEs to list themselves on National Stock Exchange that would be supported by the Government by purchasing 10% bonds.
Accordingly, to further improvise the scenario, India is trying to collaborate with the German government. The German Government will use innovation and skill development in MSMEs to make Indian goods valuable in the Global Market.
Union Minister, Nitin Gadkari Addressing the Event
Apart from MSMEs, he also mentioned that the administration aims to develop rural businesses and generate employments by working on retrograde incorporation. Gadkari further emphasizes the nation’s aim to make India the manufacturing capital of the world. International companies must trust India to develop products with the utmost quality while reducing 25-30% of the cost. Finally, focusing on women entrepreneurs he launched a book entailing the stories of many women achievers that would encourage fellow womankind.
India’s economic stand significantly depends on Indian advancement in MSMEs, which is responsible for over half of the export. MSMEs success depends on the new policies tailored by the government. One such attempt is the new credit ranking policy, which is believed to provide enough information to clients to increase trade.