In a meeting with the Union Finance Minister Nirmala Sitharaman and Ministry of Micro, Small and Medium Enterprises (MSME) Minister Nitin Gadkari, industry leaders highlighted that the sector creates 11.3 crore jobs across the country and funding issues faced by the industry at the moment are making it difficult for them to sustain themselves.
The sector is facing problems galore, the government portal which is supposed to process loans in 59 minutes has turned out to be a time-consuming process which is choking the funding funnel, the industry leaders said.
Sighting various issues in procuring swift loans, the MSMEs urged Nirmala Sitharaman to look into the issue.
Government sources have told India Today that the banking secretary has been asked to look into the issue of delayed disbursal of loans.
Action on the issue is expected soon.
Goods and Services Tax (GST) related issues were also the focal point of this meeting.
Delayed payments from both corporates and public sector banks were also discussed at length. Ministry of Finance officials present at the meeting took note of all the issues with the agenda of solving them swiftly.
Ministry of Finance along with the Ministry of Micro, Small and Medium Enterprises assured industry leaders that their issues will be looked into and worked upon speedily.
Mukesh Mohan Gupta, President, Chamber of Indian Micro Small and Medium Enterprises said, "The need of the hour is micro-financing for the MSMEs and there is an urgent need to create a special tribunal to tackle issues faced by the MSMEs."