Govt mulling to set up Market Intelligence Cell for MSMEs

By Rajnish Singh

New Delhi, Dec 15 (SocialNews.XYZ) Observing that market intelligence plays a crucial role in strengthening and improving micro, small and medium enterprises (MSME), the Central government is considering the suggestion of a parliamentary panel to set up a Market Intelligence Cell (MIC) for the sector.

The MIC would regularly "map domestic and foreign markets for meeting the requirement" of MSME sector, which has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades as it not only plays a crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialisation of rural and backward areas, thereby, reducing regional imbalances, and assuring more equitable distribution of national income and wealth.

The Parliamentary Standing Committee on Industry, under the chairmanship of Rajya Sabha MP K. Keshava Rao, on Tuesday presented the 300th Report on Action Taken by Government on the Recommendations and observations of the Committee contained in its 297th Report on Demands for Grants (2020-21) pertaining to MSMEs to the Rajya Sabha.

For strengthening and betterment of MSME Sector in the country, the panel emphasised the need for exploring the concept of Artificial Intelligence, which is a rapidly emerging concept in the markets.

It recommended setting up of a Market Intelligence Cell for MSMEs that would regularly map domestic and foreign markets for meeting their requirements.

Considering the high tax rates of proprietary and partnership firms, the panel recommended a reduction in tax rates for such firms from 30 per cent to 22 per cent on the lines of reduction in corporate tax and also suggested that these issues may be taken up with the Finance Ministry.

Expressing concern over the longstanding issue of non-availability of sufficient amount of working capital due to difference in assessment norms being followed by KVIC (Khadi and Village Industries Commission) and banks, the Committee recommended that the issue may be sorted out by KVIC in consultation with banks expeditiously for growth of sector and creation of more employment opportunities for the economically weaker sections of the society.

Voicing concern for Khadi artisans who suffered most due to Covid-19 pandemic, the Committee recommended that more and more of such artisans should be covered under the various BimaYojana Schemes including life schemes run by the government as a social security measure.

It also recommended that a study be conducted to assess the adverse effects of Covid-19 pandemic on Khadi artisans.

The panel recommended that the process of seeking approval and setting up of SFURTI (Scheme of Fund for Regeneration of Traditional Industries) projects should be expedited keeping in mind the hardships faced by the populace in rural areas after their migration from urban areas to their native places due to Covid-19 pandemic.

It also suggested that more budgetary provisions should also be made for SFURTI projects and the pending project of setting up of 1,250 SFURTI clusters should be expedited.

Emphasising the need to mitigate the problem of unemployment in rural areas, especially in the present economic scenario, the panel reiterated its recommendation to set up more number of Solar Charkha projects in the country.

For revival of the coir industry, which has been adversely affected by Covid-19 pandemic, the Committee recommended that the government should take concrete steps as the industry has huge potential to provide large-scale employment to artisans in coconut producing states.

(Rajnish Singh can be contacted at rajnish.s@ians.in)

Source: IANS