Anand Sharma calls for greater credit support for rural SMEs

In a bid to facilitate an all-inclusive development of the SME sector in India and integrate rural areas with the country's economic processes, the Union commerce and industry minister, Anand Sharma has sought more credit facilities to be made available by banks to small firms in rural India.

Speaking during the ‘India Rural Summit and Exhibition' organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) in association with the Department of Commerce, Mr Sharma stated, "Extending greater financial support in the form of making affordable credit by banks and adequate resources available to small enterprises will be helpful in bringing about higher growth of the SME sector, thereby leading to significant transformation of the country."

Mr Sharma further urged banks to shed their inhibitions and apprehensions with regard to issues such as collateral and security before offering credit to SMEs.

"Step-up in lending to small firms in rural India will help them to implement their capacity expansion and technology upgradation plans, thereby enabling them to improve their competitiveness and enhance their contribution to the country's GDP growth," said Santosh Maheswari, proprietor of Modern Stores, a small-sized kirana store in Ajmer, Rajasthan.

The commerce and industry minister further highlighted that better returns can be earned by banks through lending to small firms as they are more punctual in making repayments.

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