In our last post ‘The Role of MSMEs in the Success Of ‘MAKE IN INDIA’, we discussed about the importance of MSMEs in the success of ‘Make In India’ scheme. However, it seems that Modi Government’s Make in India is going to fail due to the negligence of Government and RBI towards SMEs and NPA issue. The Industrial experts have forecasted that if Modi government will not be able to resolve the NPA issue of MSMEs, their Make in India campaign will surely fail.
With the pan India campaign ‘Make In India’ Government has tried to create an impression of building up India by encouraging Indian people to start up their own business and be an entrepreneur. However, while being encouraging, the Government is overlooking the hurdles faced by the existing SMEs, who are feeling helpless due to the lack of support from RBI and Government. According to Dr. Visswas, the ex-banker and advisor at NPA Consultancy, Government and RBI could not find a satisfactory solution on the issue of Non-performing asset, which is ultimately damaging national economy. Due to lack of support from banks, investment companies and corporates, a lot of SMEs are unwillingly shutting down their businesses.
The sickness of market, unavailability of bank loans, lack of machinery, inefficient market moves and many more…SMEs are going through a lot of difficulties while building up their businesses. At a recent seminar Dr. Visswas said, while doing hurry in recovering the loans, banks are completely ignoring the basic rules and principles set by RBI. He added, because of the lack of awareness about the RBI rules and regulations, lot of SMEs are going through the unbearable recovery pressure of banks. He suggests, banks should give SMEs extra time to build up their lost confidence and come up with strongly built up business.