Arun Jaitley perceives MSMEs as 'engine of development, employment'

New Delhi, Feb 1 Finance Minister Arun Jaitley on Thursday asserted that the Micro, Small and Medium Enterprises (MSMEs) are an engine of development and business.

Presenting this year's Union Budget, Jaitley declared Rs 3794 crore to MSMEs for credit support, innovation, and capital interest subsidy. Further, the amount is also anticipated that would ease income challenges.

"There has been mass formalization among MSMEs post demonetisation and the presentation of the Goods and Services Tax (GST), which is creating an expansive budgetary data database. This will be used for financing MSMEs. Online credit authorizing is to be redone, and the legislature will soon declare measures for NPA resolution for MSMEs," he said.

Jaitley further noticed that FinTech firms and NBFCs could drive the development of MSMEs in India, and henceforth should attempt ventures to expand action.

Jaitley also said the government targets Rs 3 lakh crore for loaning under the MUDRA conspire in 2018 - 19, and proposed to bring open segment banks under the Trade Receivables Discounting System (TReDS) and connection it with the GST Network (GSTN).

In terms of angel investors and venture capital, Jaitley noticed that plans like Startup India will produce hearty venture administration. Moreover, the Finance Ministry, he stated, is checking arrangements to take extra measures for them to develop.