Indian Economy News

West Bengal govt to look for ways to boost credit to MSMEs: Mamata Banerjee

Kolkata: West Bengal Chief Minister Mamata Banerjee on Monday said that her government "will see" how the state's micro, small and medium enterprises (MSMEs) sector can avail of loans, adding that it will be asking state cooperative banks (SCBs) about the scope of such assistance.

Addressing an audience of the state's MSME businessmen during the State MSME Conclave, Banerjee said, "Bank loan is also a problem for the MSME sector and they are facing a lot of problem because of demonetisation and GST (goods and services tax). We will see how they can get loans."

Currently, commercial banks and SCBs provide loans to Kisan Credit Card holders and options resembling such an initiative can be explored.

Banerjee, however, maintained that banking in rural India needs to be strengthened and loans from both nationalised as well as private banks need to be given to MSMEs.

The state government will also implement services, like online single-window services, technology facilitation centre, and a finance portal, among others, to solve funding issues and further improve the ease of doing business scenario in West Bengal.

Banerjee also assured the sector, which employs about 11 million in the state, support in export promotion. Overall exports from West Bengal currently stand at Rs 620 billion, which Banerjee targets to double in the next three years.

She said that her government, together with sector-specific export promotion councils, is also working for setting up sector-specific export facilitation centres to provide in-house and outreach business development services.

"If you do something here, it can go to the UK, China, USA... and others. See the tomorrow, not today," she said.

Banerjee assured the sector that whenever her government visits any foreign country for promotion of the state and attracting investments, MSMEs will also be promoted.

She is poised to visit Germany shortly.

Banerjee also suggested that the tourism sector needs to be brought under the MSME segment.

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