Credit cost, delayed pay inhibiting growth

Jun 21, 2010 - Age Correspondent |

New Delhi

High cost of credit, non-availability of raw material at a competitive cost and delayed payments are major factors that inhibit the growth and development of micro, small and medium enterprises (MSMEs) in the country, according to a CII survey.
Some 79 per cent respondents from the sector believed that high cost of credit was the most important impediment to growth and development of MSMEs. Around 64 per cent respondents said that procurement of raw material at a competitive cost and delayed payment (55 per cent respondents) are the crucial factors that inhibit growth and development of MSMEs. About National Manufacturing Competitiveness Programmes (NMCP) schemes, 70 to 75 per cent of MSMEs are aware of these schemes but 60 to 70 per cent of them are not availing the benefits.
The survey ranks infrastructure development, simplification of labour laws, promotion of innovation and cutting edge technology as the most important factor for repositioning of the Indian MSMEs.
The survey was undertaken to identify key factors that inhibit growth and development of MSMEs, prioritise the key policy initiatives needed to reposition the MSMEs and to analyse the outreach of the National Manufacturing Competitiveness Programmes schemes.

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