0.2044
900 319 0030
x

22/06/2021 - Government Policies

iasparliament Logo
June 22, 2021

Micro small medium enterprises financing deficit can be narrowed down with help of policy and behavioral changes. Do you agree with this view? Comment (200 Words)

Refer - Livemint

Enrich the answer from other sources, if the question demands.

5 comments
Login or Register to Post Comments

Abdul hakkim 3 years

Please review mam /sir

IAS Parliament 3 years

Good attempt. Keep Writing.

IAS Parliament 3 years

KEY POINTS

·        The world over, micro, small and medium (MSME) enterprises are the backbone of a healthily balanced economy.

·        The MSME Development Act of 2006 proposed guidelines for resolving the problem of delayed payments. Further, the Factoring Regulation Act, 2011, helped codify the factoring business to address payment delays.

·        As per a recent report, Unlocking Credit for India’s Job Creators, brought out by the Global Alliance of Mass entrepreneurship (GAME), the total outstanding payments to be made by buyers to registered MSMEs in India could be about Rs.15 trillion.

·        The trade receivables discounting system (TReDS) initiated by the Reserve Bank of India (RBI) is a unified platform for sellers, buyers and financiers to facilitate the financing of trade receivables of MSMEs from corporate , including government departments and public sector undertakings (PSUs).

·        In January 2018, the Economic Survey noted that the goods and services tax (GST) offered exciting possibilities for not just ushering in a single market, but also for other efficiency gains.

·        This would grant buyers and sellers access to e-invoices through a single window for factoring and also enhance competition and liquidity, reducing the price of factoring.

·        A committee headed by U.K. Sinha had recommended that a credit enhancement mechanism for extending guarantees/comforts with respect to invoices accepted by smaller/lower-rated corporates be evolved.

·        This could be facilitated by the National Credit Guarantee Trust Corporation and the department of financial services.

 

 

 

Cibi Siddharth 3 years

kindly review and provide suggestions sir/mam

IAS Parliament 3 years

Try to include about measures to narrow down the gap. Keep Writing.

Tapasvi 3 years

Kindly review 

IAS Parliament 3 years

Good attempt. Keep Writing.

S Singh 3 years

Please review 

Aruna 3 years

your content is short and also not clear . If you r going to upload answer sheet means pls scan and upload it is also helpful for others to review your answers

ARCHIVES

MONTH/YEARWISE - MAINSTORMING

Free UPSC Interview Guidance Programme