MSMEs' Credit Rating Is Set for a Model Change
In the recent Cabinet reshuffle, new Union minister Narayan Rane for the micro, small and medium enterprises (MSMEs) took charge.
Coming from the MSME-intensive state like Maharashtra, the sector has a lot to look up to from him.
The first challenge today is enhancing the institutional share of credit to the sector to at least 50% from just 23% MSME units.
The second challenge is, developing a public credit registry to provide dependence on secured data as the base for lending, replacing collateral and guarantees.
A few days before departing, his predecessor had announced that the sector will be provided with a credit rating tool.