PHDCCI urges RBI to ease credit flow and introduce industrial schemes for J&K’s MSMEs

Srinagar, Feb 20: The PHD Chamber of Commerce and Industry (PHDCCI) has called for significant policy reforms to enhance credit access for Micro, Small, and Medium Enterprises (MSMEs) in Jammu and Kashmir, emphasizing the urgent need for financial support to sustain and grow businesses in the region.

At the 65th Empowered Committee Meeting on MSMEs held at the Reserve Bank of India (RBI) in Jammu, key representatives from PHDCCI Kashmir, including Co-Chair Himayoun Wani and Co-Convenor of the Taxation Committee, highlighted pressing challenges faced by the MSME sector. The meeting, chaired by C.S. Azad, Regional Director of RBI Jammu, focused on assessing the credit flow to MSMEs and addressing the financial barriers impeding their growth.

During the discussions, Wani underscored the difficulties MSMEs face due to strict credit score requirements and the classification of businesses as Non-Performing Assets (NPAs) due to uncontrollable circumstances. He stressed the importance of expanding Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) coverage to include startups, enabling easier access to financial assistance. Additionally, he advocated for increased funding opportunities under the Prime Minister’s Employment Generation Programme (PMEGP), which he said would provide much-needed capital for budding entrepreneurs in the region.

Another major concern raised was the lack of industrial schemes specifically catering to J&K, which has negatively impacted credit flow to MSMEs. The PHDCCI representatives urged the committee to consider extending existing industrial benefits or introducing new schemes tailored to the region’s unique economic landscape. They also pushed for policies that would streamline credit approvals and offer more flexibility to small and medium enterprises struggling with financial constraints.

The meeting saw participation from prominent stakeholders, including banking sector representatives and government officials, who engaged in discussions on strategies to fortify the MSME ecosystem in Jammu and Kashmir. In response to the concerns raised, the committee assured that the recommendations put forth by PHDCCI Kashmir would be carefully examined in future policy deliberations, with the objective of fostering a more supportive financial environment for local businesses.