NEW DELHI: President Pranab Mukherjee today favoured enhancing credit availability for the Micro, Small and Medium Enterprises to give a filip to the sector, saying it had a great potential to be a "true agent of socio-economic change".
"...we must direct our efforts at increasing the competitiveness of this sector by enhancing the availability of institutional credit, promoting innovation and technology, providing adequate industrial infrastructureBSE -3.16 %, meeting demands for skill development and strengthening market support," he said.
Mukherjee was speaking after giving away National Awards to successful MSMEs and their lending banks here.
"The growth potential of the MSME units should not be impeded by lack of access to financial resources. There is a need to increase the reach and coverage of financial institutions by expanding branch network to locations near industrial clusters," Mukherjee said.
The Prime Minister's Task Force on MSMEs had recommended 20 per cent year-on-year growth in credit to micro and small enterprises to ensure enhanced credit flow.
Terming the Capital Market as an important resource raising medium for businesses, Mukherjee said, the Small and Medium Enterprises Exchange platform launched by the National Stock Exchange and the BSE would allow small and medium units to access the capital market to raise necessary resources.
"This will also help diversify risk in these enterprises by widening the investor base," he added.
The President also lauded the efforts of the government to ease the flow of credit to the MSME sector.