India News | Over 25 Pc Micro and Small Units Struggling to Survive in NE: Study
Get latest articles and stories on India at LatestLY. A study by the MSME Export Promotion Council (EPC) stated that over 25 per cent of micro and small enterprises in Northeastern states are struggling to survive and suggested a five-point strategy to revive these units and support new startups.
Guwahati, Sep 25 (PTI) A study by the MSME Export Promotion Council (EPC) stated that over 25 per cent of micro and small enterprises in Northeastern states are struggling to survive and suggested a five-point strategy to revive these units and support new startups.
The region hosts around 74,000 MSMEs, but many face crises due to challenges such as a lack of affordable finance, rapidly changing technology and inadequate infrastructure, it said.
MSME EPC chairman Dr D S Rawat, while releasing the study report in New Delhi on Wednesday, said many startups have come up and helped the region in providing jobs, but some of them are in deep crisis in the absence of hand-holding either by large units or institutions.
To address these issues, the EPC has recommended that state governments establish high-powered committees to prioritise the challenges faced by MSMEs.
They suggested developing a roadmap to create a conducive environment for tapping into the region's potential, focusing on skill development, opening showrooms for MSME products, and connecting these enterprises with research and development centres and global marketing agencies.
The study emphasised the need for a new financing model that involves the DoNER ministry, multilateral institutions, and private players to enhance industry attractiveness and foster entrepreneurship. The proposed 'Single Window' system aims to simplify processes for MSMEs and attract private investments, it added.
Major challenges include geographical barriers, underdeveloped transport systems, low participation from the private sector, and insufficient financial and infrastructure facilities, the report said.
The report advocated for collaboration with innovative companies and institutions and encouraged private sector funding through debt instruments with tax incentives.
Additionally, it suggested building networks of development service providers to offer customised solutions to MSMEs in technology, product development, and marketing.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)