RBI forms expert committee to rejuvenate MSMEs
The Reserve Bank of India (RBI) has formed an expert committee to look into the various challenges being faced by MSMEs and suggest ways and measures to rejuvenate them.
Composition of the Committee
The eight-member committee would be chaired by former Securities and Exchange Board of India chairman UK Sinha. The other members of the committee are Ram Mohan Mishra, Pankaj Jain, PK Gupta, Anup Bagchi, Abhiman Das, Sharad Sharma, and Bindu Ananth.
Terms of Reference of the Committee
The Terms of Reference of the Committee include:
- Review the current institutional framework in place to support the MSME (micro, small and medium enterprises).
- Examine the factors affecting the timely and adequate availability of finance to the MSME sector.
- Study the impact of the recent economic reforms on the sector and identify the structural problems affecting its growth.
- Conduct a study about the best global practices with respect to MSMEs and recommend its adoption in India, wherever appropriate.
- Review the existing MSME focused policies and its impact on the sector.
- To propose measures for leveraging technology in accelerating the growth of the sector.
Significance of MSMEs for Indian Economy
The MSMEs are termed as engines of growth of India. MSMEs account for more than 80% of the total industrial enterprises in India creating more than 8000 value-added products and contribute about 8% to the GDP. About 45% of total manufacturing output and 40% of the total exports from the country are from MSMEs.