Indian Economy News

Easy credit access for MSMEs at lower interest rates is the need of the hour: FICCI manufacturing survey

  • IBEF
  • July 18, 2023

Micro, small, and medium-sized enterprises (MSMEs) should have easy and affordable access to credit, according to the latest quarterly manufacturing survey from the trade group Federation of Indian Chambers of Commerce & Industry (FICCI), drawing responses from about 400 manufacturing units across nine major sectors.

The survey called for more readily available financing for manufacturers, including providing working capital loans to MSMEs at lower interest rates, to support the continued growth of various industries, including those for capital goods and construction equipment, electronics and white goods, machine tools, metal, and metal products.

In order to enhance ease and reduce the cost of doing business, it also recommended extending the moratorium on Emergency Credit Line Guarantee Scheme (ECLGS) loans for the MSME sector and reducing regulatory requirements for MSMEs.

Moreover, the survey noted that economic momentum persisted in the following quarters of FY23 as well, with 55% of respondents reporting increased output levels in Q4 of FY23. This follows the Indian economy's recovery in FY22.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.