New Delhi: MP Manish Tewari has expressed his concerns, questioning the delay in implementing the proposed business credit card scheme by the Ministry of Finance.
On April 8, 2022, the Parliamentary Standing Committee on Finance presented a crucial report focusing on the challenges faced by the Micro, Small, and Medium Enterprises (MSME) sector. The report highlights a staggering credit gap ranging between ₹20 to ₹25 lakh crores in this vital segment of the Indian economy.
According to the findings, only 40% of small and micro industries have access to funding from financial institutions, leaving a significant number without adequate financial support. The committee emphasized the critical importance of the MSME sector, noting that it contributes approximately 30% to the country’s GDP, generates 45% of manufacturing output, and accounts for nearly 48% of total exports.
In light of these concerns, the report recommended the urgent introduction of a business credit card scheme tailored to support MSMEs. Such a scheme is deemed essential to address the financial challenges faced by small businesses, which play a pivotal role in driving economic growth and employment.
The response from the ministry remains awaited as the MSME sector continues to grapple with deep-seated financial obstacles.