Coimbatore: Laghu Udyog Bharati(LUB), an all India business organization to assist and promote micro and small industries, conducted an MSME meet today here on Saturday baaed on the theme "Enhancing spirit of Entrepreneurship".
Coimbatore: Laghu Udyog Bharati(LUB), an all India business organization to assist and promote micro and small industries, conducted an MSME meet today here on Saturday baaed on the theme "Enhancing spirit of Entrepreneurship".
During the meet, sessions were held to elucidate on the schemes and benefits announced by the government exclusively for the MSME sector.
Speaking to the press, Govind Lele, National General secretary, LUB stated that there is a slight downturn in the economy but it can't be termed recession. "Due to the slump in automotive sector, there is a slow down in the economy and MSME sector in particular, its nothing but reduction in growth. The industries which were growing at a rate of 8 to 12% are now at a lower growth rate. MSME industries in certain sectors like FMCG still record good growth," stated Lele.
When questioned on the problems faced by the MSME sector in securing loans, Govind said "Banks are not ready to give loans without collaterals and LUB has been continuosly representing this issue. Percentage of NPA in MSME sector is only 3.75% compared to 10% in corporate sector which translates to a very high value. We are highlighting this to the financial institutions, so that banks and financial institutions come forward to give loans to MSMEs."
Lughu Udyog Bharati has put forworth certain demands to the government including a manufacturing unit in the defence sector stated Govind. "If there is a large manufacturing unit to cater to the defence corridor, MSMEs can supply products to the unit and thereby it would generate employment and profit. However, the defence corridor alone would not mean much to the growth of MSME sector in the region", added Govind.
Prakash Chandra, National Organising Secretary - LUB, Baldevbhai Prajapathi ,National President - LUB , Anand Sherkhane, Additional Development Commissioner, Ministry of MSME, Anup Wadhawan, Secretary, Department of Commerce, Ministry of Commerce and Industry and members of MSME associations were present at the event.
During the meet, sessions were held to elucidate on the schemes and benefits announced by the government exclusively for the MSME sector.
Speaking to the press, Govind Lele, National General secretary, LUB stated that there is a slight downturn in the economy but it can't be termed recession. "Due to the slump in automotive sector, there is a slow down in the economy and MSME sector in particular, its nothing but reduction in growth. The industries which were growing at a rate of 8 to 12% are now at a lower growth rate. MSME industries in certain sectors like FMCG still record good growth," stated Lele.
When questioned on the problems faced by the MSME sector in securing loans, Govind said "Banks are not ready to give loans without collaterals and LUB has been continuosly representing this issue. Percentage of NPA in MSME sector is only 3.75% compared to 10% in corporate sector which translates to a very high value. We are highlighting this to the financial institutions, so that banks and financial institutions come forward to give loans to MSMEs."
Lughu Udyog Bharati has put forworth certain demands to the government including a manufacturing unit in the defence sector stated Govind. "If there is a large manufacturing unit to cater to the defence corridor, MSMEs can supply products to the unit and thereby it would generate employment and profit. However, the defence corridor alone would not mean much to the growth of MSME sector in the region", added Govind.
Prakash Chandra, National Organising Secretary - LUB, Baldevbhai Prajapathi ,National President - LUB , Anand Sherkhane, Additional Development Commissioner, Ministry of MSME, Anup Wadhawan, Secretary, Department of Commerce, Ministry of Commerce and Industry and members of MSME associations were present at the event.