Indian businesses are bullish on the economy and India’s growth story, but could do with some help from the banking system. This was the message Indian businesses, especially those from the medium and small scale industries sector, have for the establishment.
“When it comes to cost of capital, our banks have not done enough,” said Saket Dalmia, the new president of the PHD Chamber of Commerce, generally considered the leading industry body for the MSME sector.
Badly battered by the pandemic, its lockdown and subsequent economic downturns, the MSME sector has been struggling. One report last year estimated that as much as one-third of MSMEs had shut down or were on the verge of going under.
The reasons are not far to seek—the lack of access to desperately needed funds, despite the many schemes and stimulus announced by the union government, including ECLGS.
“We need access to capital,” Dalmia added. “We have requested the finance minister and the RBI governor.”
“We have some amazing jewels in the Indian economy. If a company has survived the likes of Covid, you can imagine (its potential and resilience). But they are not getting enough funding,” he alleged.
This despite the finance minister recently throwing the gauntlet at the industry on why it is not investing money when the government is pumping money in. “Indian economy is in a strong position. We are bullish on growth, but we need funding and hand-holding.”
