MSMEs key to economic revival; India needs Rs 50-60 lakh cr in FDI to reverse coronavirus blow: Gadkari

Credit and finance for MSMEs: With coronavirus puncturing India’s economic growth, the country now needs Foreign Direct Investment worth Rs 50 to 60 lakh crore to get back on the growth track and increase liquidity into the market. The money can be tapped mainly through infrastructure projects as well as MSME sector as the coronavirus-hit economy needs a major push, Union minister Nitin Gadkari told PTI in an interview. “Country at this juncture needs liquidity. Without liquidity our economy’s wheel will not accelerate… Rs 50-60 lakh crore foreign investment is needed in the country under present circumstances to boost the economy,” said Nitin Gadkari, who is minister of both transport and SMEs.

Since the government imposed a nationwide lockdown on 24 March 2020 to curb the spread of coronavirus, economic activities have been significantly disrupted. The country now needs a liquidity boost and various Infrastructure projects such as highways, airports, inland waterways, railways, logistic parks, broad gauge and metro, as well as Micro, Small and Medium Enterprises (MSMEs) can attract large scale foreign investment. 

In the wake of the same, the government has already started work to get investors from Dubai and the US on board. “Some MSMEs are already listed on the BSE. I have talked to investors in Dubai and the US to come and invest in such MSMEs based on their three-year turnover, GST track record, IT record and good rating. Investing in these can result in rich dividends as these do exports also,” Nitin Gadkari said. He also emphasised on ramping up technology to increase growth and enhance exports, especially at a time when Prime Minister Narendra Modi has repeatedly asked the country and manufacturing industry to reduce dependence on imports.

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Meanwhile, the MSME sector has been a focus area for the government as it looks to prop up domestic manufacturing under Atma Nirbhar Bharat Abhiyan. In its recently announced Rs 21 lakh crore economic package, the centre had earmarked a significant chunk for MSMEs to help bolster the segment.