Growth in SME sector ensures industrialisation in backward areas: Tarun Daga, CII

JAMSHEDPUR: Growth in the SME sector ensures industrialisation in backward areas and helps in more equitable growth, said Tarun Daga, chairman, CII Jharkhand state council.

"It has made significant contributions to industrial production, export and employment generation," he said.

SMEs were today exposed to greater opportunities for expansion and diversification across the sectors, but also faced a number of challenges at various stages, mostly with their financial requirements, Daga said.

He was speaking at the launch of the CII FFC at Jharkhand during a seminar here today on empowering SMEs by addressing their financial needs.

The CII FFC (Finance Facilitation Centre) would provide a framework to bridge the gap between service providers, banks and small and medium industries, Daga said adding, the CII had set up an online SME FFC about eight months back as part of its initiative to empower small and medium enterprises (SMEs) by addressing their financing needs and facilitate access to finance and credit for SMEs.

Other facilities offered by the CII FFC include online training in finance management and other important topics for SMEs, information about various SME and MSME schemes launched by the Centre and financial institutions and peer to peer networking.

Adarsh Agrawal, chairman, CII Jamshedpur zonal council, said the total gap in MSME, which rely heavily on private money lender and unorganised financial sector for their requirement, funding was estimated to be around USD 126 Billion

"This small pool of funding providers often force many potentially viable and growth focused MSMEs out of operation," Agrawal said.

S K Behera, chairman, MSME sub-committee, Eastern Region, said the CII FFC would subsequently be launched in all five states in the region - Chhattisgarh, Bihar, West Bengal, Odisha and Jharkhand.