George Alexander Muthoot, MD, Muthoot Finance said that the announcement relating to MSMEs and thrust on digital banking in the budget will further go a long way in supporting the economy,
He said, the MSME sector has been one of the most impacted during the pandemic. Focusing on further supporting the MSME sector and reduce stress in this segment, the Government has widened the ECLGS scheme and revamped CGTMSE (Credit Guarantee Trust for Micro and Small Enterprises). The CGTMSE scheme will be revamped with required infusion of funds. This will facilitate additional credit of ₹2 lakh crore for MSMEs and expand employment opportunities. We believe that the NBFC sector will also benefit from the allocation of ₹48,000 cr for affordable housing. This move will accelerate the credit demand and positively affect the performance of NBFCs catering to the sector, he said.
K Paul Thomas MD & CEO, ESAF Small Finance Bank said that the introduction of Edu tech, fintech and upskilling schemes along with a digital push will define the sustainable growth trajectory. As campuses are allowed to open in Gift Cities and specific finance and fintech courses by global universities are encouraged, there is an immense possibility for growth in the sector. As Kerala is planning to have the country’s second Gift city in Kochi this will be a great boost for the state’s higher education sector.
Facilitation of additional credit for MSMEs and launching of the Raising and Accelerating MSME Performance (RAMP) programme would help MSME sector to mitigate the adverse situations.