Faster Access to Capital for MSMEs: A Game-Changer for Growth

Micro, Small, and Medium Enterprises (MSMEs) in India are experiencing faster access to capital, thanks to various central and state government schemes, according to M. Ponnuswami, Co-Chairman of the CII National Task Force for MSMEs. Speaking at the graduation ceremony of SASTRA Deemed University, Ponnuswami, who is also Chairman and Managing Director of Pon Pure Chemicals Ltd, highlighted the favorable business and regulatory environment for MSMEs, encouraging young graduates to consider starting their own small enterprises.

Ponnuswami emphasized the significant role of MSMEs in India’s economic landscape, particularly in government procurement. He noted that half of the services procured through the Government e-Marketplace (GeM) portal come from MSMEs, demonstrating the sector’s growing contribution. He also lauded the success of the Credit Guarantee Scheme (CGS), which has been instrumental in reducing borrowing costs for MSMEs. The scheme guarantees loans taken by MSMEs, thereby minimizing the lender’s risk. On average, ₹800 crore are disbursed daily under the CGS scheme, accelerating the flow of capital to smaller businesses.

In the same event, Siva Ganesan, Global Head of AI and Cloud Business at TCS, addressed the graduates on the evolving software services industry, especially with the advent of Generative AI and Quantum Computing. Ganesan urged the young professionals to develop new skills in areas like Large Language Models, Data Sciences, and IoT, while noting that the rate of technological advancements is faster than ever. His advice echoed Ponnuswami’s message about identifying opportunities in problems rather than problems in opportunities.

The event was presided over by Dr. S. Vaidhyasubramaniam, Vice-Chancellor of SASTRA, who welcomed the gathering.

Disclaimer: This article is for informational purposes only and does not provide specific financial, business, or legal advice. Please consult experts for advice on MSME financing and schemes.