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Agree with the answer given by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN, Project Execution Manager & Accounts Manager
THANX FOR INFO... MR.VINOD ,,,,,,,,,, APPRECIATED
SIDBI is the Principal Financial Institution for the Promotion, Financing & Development of the MSME Sector in India.
Agree with Krishna.
India has attracted worldwide attention recently because of the rapid growth rates. There is a broad consensus of opinion that India should continue to grow rapidly and possibly faster to eradicate poverty than was the case in the past. As a consensus has emerged that this growth must be more inclusive. Among the factors that could contribute to the achievement of high growth and overall provide more jobs and increase productivity, and skills development as well as education.
If the sector of small and medium-sized enterprises active he can play a major role in creating jobs and achieving high economic growth. This sector has the greatest ability to provide jobs for seventy per cent of the labor force that is still humiliating to agriculture. To achieve this growth and maintain it as well as increase jobs promote industrial growth and the growth of services, which is motivated by small and medium enterprises.
Small and medium enterprises in India and the role of the World Bank
Even now, a lot of factors restricting the growth of small and medium enterprises in India and hamper their competitiveness. The lack of access to adequate financing in a timely manner of the decisive factors in particular. Without this funding, borrowing becomes more expensive and less profit margins, limiting the establishment of new units and will result in the increase in jobs.
Can be attributed to funding constraints for concerted several factors, including the policy framework, and legal / regulatory (implementation of bankruptcy laws and the provisions of contracts), and institutional weaknesses (lack of appreciation of good credit), and the lack of credit information reliable on small and medium enterprises.
During recent years, the Indian authorities have taken several steps to address the issue of funding and the development of small and medium enterprises, and the World Bank provided support through project financing and development of small and medium enterprises.
In2004, he helped the loan provided by the World Bank $120 million for the Small Industries Development Bank of India - the main bank for small and medium enterprises in India - in the conversion of long-term loans. And lending reached in the framework of this project to927 small and medium enterprise spread in ten Indian states. And provided loans for five years on average. And steadily improved its lending activities in the branches of the Small Industries Development Bank covered by the project.
SIDBI (Small Industries Development Bank of India) was set up on April2,1990 as a
wholly owned subsidiary of IDBI (Industrial Development Bank of India) with a authorised
capital of Rs250 crore. IT was set up as an apex institution for promotion, financing and
development of industries in small scale sector and for coordinating the functions of
other institutions engaged in similar activities. SIDBI extends direct/indirect financial
assistance to SSIs, assisting the entire spectrum of small and tiny sector industries
on All India basis.Its objectives are –
1. To initiate steps for technological upgradation and modernisation of existing units
2. To expand channels of marketing of SSI sector products in India and abroad
3. To promote employment oriented industries in semi urban areas and to check
migration of population to big cities.
The range of assistance comprising financing, extension support and promotional, are made
available through appropriate schemes of direct and indirect assistance for the following
purposes:-
(a) Setting up of small scale projects
(b) Expansion, diversification, modernisation, technology upgradation, quality
improvement and rehabilitation of existing SSIs
(c) Strengthening of marketing capabilities of SSI units.
(d) Development of infrastructure for SSIs and
(e) Export promotion.
Hi Sir,
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Thank you Mr. VENKITARAMAN KRISHNA MOORTHY VRINDAVAN for sharing your well explained answer. I have learnt something new today.
Already well explained by Mr. Krishna and Mr. Georgei.
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