FDI can be explored in NBFCs to strengthen them for extending support to MSMEs- Nitin Gadkari
– globalbihari bureau
New Delhi: Government is mulling Foreign Direct Investment (FDI) in Non Banking Finacial Companies (NBFCs). Offering a broad hint at such a prospect, Union Minister for MSME and Road Transport and Highways, Nitin Gadkari, said, “FDI can be explored in NBFCs to strengthen them, which will lead towards greater support to MSMEs (Micro, Small and Medium Enterprises).”
He further added that strengthening of NBFCs, state cooperative banks, district cooperative banks, credit societies was required to extend support to MSMEs during this challenging time when the country was facing economic instability due to the lockdown to tackle the COVID-19 pandemic.
Gadkari said these in a meeting via video conferencing with the representatives of Council of Leather Export, FICCI-‘NBFC Program’ and IMC Chamber of Commerce and Industry on impact of COVID-19 on MSMEs, here today.
While mentioning about the impetus to the MSME sector to deal with the current economic instability, Gadkari explained the various support measures which had recently been announced for MSMEs including changes in definition of MSMEs to provide the required support to the sector. He pointed out that definition of medium enterprises has been further revised by increasing the investment and turnover limit basis inputs from related stakeholders.
He said special focus was required to reduce imports from other countries and added that Ministry of MSME was working on two booklets to cover details about last three year’s export and import.