SRINAGAR, OCT 6: Urging banks to simplify the process of giving loans to small enterprises, Minister for Finance, Labour and Employment, Dr Haseeb Drabu today said entrepreneurs fail not because of bad business model but due to social and domestic compulsions.
The Finance Minister was speaking at the opening ceremony of Mudra Protsahan Abhiyaan here at SKICC. The campaign is going to be held at 50 locations across the country. The ceremony was also attended by Minister of State, PMO, Jitendra Singh, Principal Secretary, Finance, Navin Kumar Choudhary and J&K Bank chairman, Parvaiz Ahmad.
Pointing to a woman in the audience whose infant kid started crying in the middle of the promotional ceremony, the Finance Minister said that the state of the woman reflected the state of an aspiring entrepreneur.
“Like the difficulties of that woman, the financial institutions need to recognise the difficulties faced by a fledgling entrepreneur. There is passion of entrepreneurship and compulsion of domesticity which financial institutions need to factor in,” Dr Drabu said.
Describing small-scale industries as the backbone of the country’s economy, Dr Drabu said various schemes have been devised since independence to address the issue of financing the micro industry but with little success.
“Mudra will try and restore balance by helping a banker understand where the intervention is required. There are millions of small enterprises in India which contribute 46 percent to manufacturing output and 44 percent to exports, yet they get only eight percent credit while their credit-to-GDP ratio is less than three percent,” he said.
Dr Drabu said the Mudra scheme doesn’t subsidise or give free loans to aspiring entrepreneurs but it will leverage the current banking infrastructure and technology so that the government is not burdened and enough traction is generated to create viable entrepreneurship.
Speaking on the occasion, MoS in PMO, Dr Jitendra Singh said that the Government of India under the leadership of Prime Minister Narendra Modi was committed to strengthen the small scale industries across the country,
Earlier, a short film was screened on the Mudra scheme and how it is going to change the culture of entrepreneurship across the country. The J&K Bank also showcased some success stories of the scheme from Kashmir Valley. On the occasion, sanctioned letters for loans availed under Mudra for various entrepreneurial ventures were handed over to the aspirants by Dr Drabu and Dr Singh.