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TAIT (Trade Association of Information Technology) has recently conducted a workshop for members to get updated on registration criteria, and numerous benefits Government offers for MSME.
The majority of IT partners belong to MSME Category. Ease of doing business is predominantly crucial for the MSME sector that can lead India’s economic growth and generate employment for millions across the country and contributes about 30% to the country’s GDP.
Samir Parekh, President, TAIT has taken up the task of registering every single member under MSME and educate them for all possible benefits of MSME thus growing member’s business.
Two prominent speakers were invited and both presented insightful sessions which were appreciated by all the members.
Session conducted by Visanji Patel of Gajora Advisory Pvt. Ltd. updated members about how to register MSME which is free of cost, finer points to be taken into consideration and how to avail maximum benefits of MSME.
Another speaker, Uday Tardalkar, a well known corporate consultant and member of various forums including IGRC, NSE, NCDEX and MCX, updated members on various options for “Ease Of Credit And Finance” under MSME.
According to the International Financial Corporation (IFC), the credit need of the Indian MSME sector stands at approximately Rs. 32.5 trillion. Despite this huge demand, out of 63.3 million existing MSMEs across India, less than 5 million have access to formal credit. A dismal reality that can be changed with the easing of credit availability to the MSME Sector particularly for the Micro enterprises.
Further, the cost of credit is high in India which should be substantially reduced by passing on the entire reduction in Repo Rates announced by the Reserve Bank of India over the last couple of years. One-time restructuring of loans is required as it will not only help the struggling MSMEs by giving them a new lifeline but would also help them to restructure their operations and grow in the future without bothering for the problems of the Bank over dues. They can raise the necessary funds/finances in view of an improved balance sheet after the restructuring, which would eventually contribute to economic growth.
Some of the benefits of MSME were summarised in the workshop as below.
1 - Loans without collaterals
2 - Subsidy on patent registration and industrial promotion
3 - Overdraft facility along with interest rate exemption
4 - ISO certification charges reimbursement
5 - Concession on electricity
6 - Helps in getting Government tenders
7 - Becomes easy to get licenses, approvals, and registrations
8 – Subsidy to take part in international fairs
A reputed banker was also guided members and solve their queries on bank finances during this session.