Explore FDI in Non-Banking Sectors for more Support to MSMEs: Nitin Gadkari

On Thursday, Union minister Nitin Gadkari said that foreign direct investment (FDI) should be explored in the NBFC sector, which in return will prove to be a huge support to micro, small and medium enterprises (MSMEs).

The leader said that strengthening of non-banking lenders or NBFCs, state cooperative banks, district cooperative banks, credit societies, etc is essential during trying times like this. In order to further strengthen non-banking financial companies (NBFCs), foreign direct investment can be explored in them, which will result in greater support to MSMEs.

According to Gadkari, a credit rating mechanism can be devised for NBFCs also to support them adding that a possibility needs to be explored to get some foreign investment in the NBFC space.  He said in a situation where an NBFC has a good credit rating, it can be a good thing if such a company can also attract foreign investment but a criteria needs to be fixed for this purpose.

Regarding request for extension of interest subvention scheme for MSMEs, which was in place until March 31, 2020, Gadkari said: "We have already recommended to the Finance Ministry for giving extension to this scheme. I am trying my level best to get it approved... If I get it, definitely we will continue this scheme".

Gadkari emphasised that the need of the hour is combat the deadly COVID-19 outbreak along with continuing economic activities.

Retreating Prime Minister Narendra Modi’s words, he said that the pandemic can be a blessing in disguise, and we need to utilise this opportunity.

He also said that the focus should be on reducing imports from other countries.