Synopsis
On March 6, SIDBI and Federal Bank signed an MoU to support MSMEs with financial services such as project finance and working capital. This partnership aims to streamline access to credit, promoting growth within the sector. PM Modi reinforced the government's commitment to strengthening the MSME landscape during recent discussions.Key Takeaways
- SIDBI and Federal Bank have partnered to support MSMEs.
- The MoU includes various financial services.
- Focus on efficient access to credit for businesses.
- Government committed to bolstering the MSME sector.
- New schemes for MSME exporters are in development.
Mumbai, March 6 (NationPress) The Small Industries Development Bank of India (SIDBI) and The Federal Bank Limited (FBL) have officially declared their partnership through a Memorandum of Understanding (MoU) aimed at delivering financial assistance to micro, small, and medium enterprises (MSMEs).
This collaboration is designed to fortify the MSME framework by providing a range of financial services, including project finance, machinery and equipment finance, working capital support, and loans against property.
As part of this agreement, both organizations will also investigate joint financing avenues to broaden credit access for MSMEs.
The initiative is projected to facilitate a more efficient funding mechanism for businesses, fostering their expansion and progress.
On March 4, Prime Minister Narendra Modi reiterated the government's dedication to reinforcing the MSME domain, labeling it as the cornerstone of India's manufacturing and industrial advancement.
During a series of post-Budget webinars via video link, PM Modi emphasized vital initiatives aimed at bolstering MSMEs and augmenting India's manufacturing and export prowess.
"In 2020, the government enacted a significant revision of the MSME definition after a span of 14 years, alleviating concerns among businesses about losing governmental benefits upon scaling up," he remarked.
The Prime Minister further noted that the government has surpassed expert expectations across various sectors and made crucial decisions regarding manufacturing and exports in the recent Budget.
A senior official from the Commerce Ministry previously mentioned that the government is also devising new programs to facilitate easy credit for MSME exporters and to assist in overcoming non-tariff barriers imposed by other nations, which have emerged as obstacles for India's merchandise exports.
During a post-Budget webinar, Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi stated that the Commerce, MSME, and Finance Ministries are collaborating on these initiatives.
He included that the government is crafting programs to offer MSME exporters effortless credit and to encourage alternative funding solutions through enhanced factoring services.
