MSME Emerging Growth can be through Import Substitution: CH. S. S. Mallikarjuna Rao, Managing Director, CEO, Punjab National Bank

No.PR-58 May 7, 2020 New Delhi MSME Emerging Growth can be through Import Substitution: CH. S. S. Mallikarjuna Rao, Managing Director, CEO, Punjab National Bank Micro, small and medium enterprises (MSMEs) form the backbone of India’s businesses and its famed entrepreneurial spirit. This sector employs nearly 11 crore Indians in over six crore enterprises; it accounts for a third of India’s GDP and more than a third of our exports. MSMEs have been passing through a hard time due to the Covid-19 pandemic since an extended nationwide lockdown has meant units have been shut for more than a month. This has meant a severe shortage of working capital, labor, and livelihoods. CH. S. S. Mallikarjuna Rao, Managing Director, CEO, Punjab National Bank (PNB) emphasized on the Digitalization in the Banking sector, which has become the new world in this COVID-19 pandemic in the recent webinar organized by PHD Chamber of Commerce and Industry on "MEGA MSME OUTREACH, Challenges for MSMEs During and Post Covid-19" on 6th May 2020 with Resurgent India, as its knowledge partner. Understanding that MSME is facing a lot of challenges during this time, CH. S. S. Mallikarjuna Rao emphasized the growth of MSME through import substitution. While deliberating, he explained that RBI has been taking a lot of initiatives and reforms for MSME before and during this pandemic which has helped to stabilize the condition of MSMEs in India. Due to this pandemic, MSMEs can’t create a market for themselves, and the government has been working to provide a market for them in the best possible way. Punjab National Bank has been financing a lot of borrowers during COVID-19 and we will continue MSMEs companies and help them to the best of our capabilities. We are always there to resolve all the problems of MSMEs. We opened an emergency credit line for the MSME sector to help it tide over liquidity issues and the working capital assessment model for MSME borrowers having limits of Rs 5 crore and above, said CH. S. S. Mallikarjuna Rao. Highlighting on the facility of standby line of credit for MSMEs as well as PNB COVID-19 Emergency Credit Facility, CH Rao said that there are also other policy initiatives like the restructuring of MSME advances, interest subvention scheme, TReDS, Mudra loan products, Credit Guarantee Trust for MSMEs, and PSB loans in 59 minutes. Looking at the current situation, import substitution can be a great way of the growth of the MSME sector which will help to replace imports with domestic production and boost the working capital and growth prospects for the MSME sector, said CH. S. S. Mallikarjuna Rao. Along with CH. S. S. Mallikarjuna Rao, the Dr. Rajesh Kumar Yaduvanshi, Executive Director, PNB, Mr. Sanjay Kumar, Executive Director, PNB, Mr. Vijay Dubey, Executive Director, PNB, Mr. Agyey Kumar Azad, Executive Director, PNB deliberated in the webinar "MEGA MSME OUTREACH, Challenges for MSMEs During and Post Covid-19". Dr. D K Aggarwal, D.K Aggarwal, President, PHD Chamber of Commerce and Industry highlighted the importance of the MSME sector, its contribution to India’s GDP, export, and employment generation. COVID-19 which came as a health crisis and now, it has become an economic crisis. Due to lockdown, the economic activities have come to a halt, and revenue generation has slowed now and MSMEs are facing a hard hit and their survival is threatened. We strongly recommend a stimulus package of Rs 16 lakh crore, which accounts for around 7% of GDP, sooner than later to mitigate the impact of Pandemic COVID-19 on the economy, trade, and Industry through various relief measures and benefits. He also gave suggestions for the smooth working of MSME including liquidity, interest on loans, rate rut, the extension of payments, and others, said Dr Aggarwal. To hand hold the MSME in the current time of crises we suggest that additional 25% working capital limit enhancement for MSMEs without any fresh application be provided, the government also needs to ensure smooth return of the migrant labourer to their respective work places , among other measures to be undertaken , as otherwise it will cause a severe impact on the resumption of economic activities for MSMEs, said Dr Aggarwal. Other senior management members of PHD Chamber of Commerce and Industry interacted with CH. S. S. Mallikarjuna Rao and other senior management of PNB which included our leadership, Mr. Sanjay Aggarwal, Senior Vice President, PHD Chamber, and Mr. Pradeep Multani, Vice President, PHD Chamber, and Mr. Gopal Jiwarajka, Former President, PHD Chamber, Mr. Sanjay Bhatia, Former President, PHD Chamber, Mr. Mahesh Gupta, Former President, Mr. Saurabh Sanyal, Secretary-General, PHD Chamber and other management, and they sought answers to their apprehensions on the MSME and industry due to COVID-19. Mr. Vinod Jain (CA), Chair, BFSI Committee, PHD Chamber, while welcoming all the esteemed guests and participants. He shared the issues and challenges faced by the industry while also suggesting relief measures and steps to ensure the smooth working of the MSME industry in the country. Jyoti Prakash Gadia, Co-Chair, BFSI Committee, PHD Chamber delivered a formal vote of thanks to CH. S. S. Mallikarjuna Rao and other senior management of Punjab National Bank. The webinar was moderated by Mr. Vinod Jain (CA), Chair, BFSI Committee, PHD Chamber, and received extensive participation of 6,000 participants which included industry players and other industry stalwarts. Ends. Media Division PHD Chamber of Commerce and Industry