Role Of Financial Institutions In New Enterprise Creation In New Delhi NCR

Abstract

MSMEs constitute a major section of the Indian economy. Thus, development of the MSME sector is vital to meet the national objectives of financial inclusion and employment generation across the urban, semi urban and rural areas. A New Entrepreneur / MSME in the areas of Agriculture, Manufacturing, Services, Exports and Trade to an Economy are like five senses of the body which are very essential to survive and absence of any one of these sectors may make an economy handicap. newline newline newlineInitiatives such as National Manufacturing Competitiveness Programme (NMCP) have been launched to support MSMEs in order to improve their competitiveness. Schemes to promote lean manufacturing, design improvement, Zero Defect Zero Effect certification, support for incubators, awareness of Intellectual Property Rights and digital empowerment to MSMEs have been put in place to achieve the related objectives. In order to support MSMEs in their technology up-gradation endeavours, Credit Linked Capital Subsidy-Technological Up-gradation Scheme (CLCS-TUS) has also been announced. newline newlineOur study is for New Enterprises in and around Delhi and NCR region. Though there is a good infrastructure facility for unit set up, there are various limitations like cross trade between borders of four jurisdictions viz. Uttar Pradesh, Haryana, Rajasthan and Delhi where the laws of trade, labour laws etc. varies from region to region. newline newlineThough there are various schemes offering subsidies from both Central and State Governments the untimely release of Subsidies/Claims/Aids hampers the capital flow to MSME as they are then bearing the interest cost on the borrowed funds in lieu of the subsidy claims. Strict guidelines should be brought in especially for release of such claims within specific time frames. newline newline newline