In a significant push to bolster the local economy, top officials in Kodagu district have called for a renewed focus on strengthening Micro, Small, and Medium Enterprises (MSMEs), aligning with Mahatma Gandhi's vision for cottage industries.
Government Backing for MSME Revival and Growth
The call to action came during a workshop organized by the Kodagu district industries and commerce department on Thursday. The event aimed at improving the performance of MSMEs. Additional Deputy Commissioner R Aishwarya, who inaugurated the session, stated that small-scale industries contribute immensely to national development. She drew parallels with nations like China, Japan, and in Europe, which progressed by developing industry alongside agriculture.
Aishwarya emphasized that India's economic progress hinges on fortifying the MSME sector with government support, which can significantly expand employment and drive broader economic growth.
Financial Schemes and Support Mechanisms Unveiled
Detailing the support available, Joint Director of the District Industries Centre, K Hanumantharaya, acknowledged that MSMEs were severely impacted during the Covid-19 pandemic. In response, the government has decided to increase encouragement through various incentives and easier loan facilities. He urged local entrepreneurs to actively utilise these opportunities.
Hanumantharaya highlighted that stronger MSMEs would create local jobs, support sustainable economic growth, promote innovation, and help avoid environmental harm. He confirmed that the government has already taken concrete steps in this direction.
Elaborating on the financial aid, District Lead Bank Manager Gangadhar Nayak revealed that bankers are supporting key sectors through credit-linked programmes. He disclosed that approximately Rs 1,300 crore has been allocated this year for encouraging agriculture, industry, and MSMEs in the region. Nayak called on beneficiaries to use these funds effectively and assured that banks are extending full cooperation and credit to MSME startups.
Concessional Loans and Future Projections
Providing specific details on loans, KSFC Assistant General Manager HK Ravi informed that loans ranging from Rs 5 lakh to Rs 5 crore are available at a concessional annual interest rate of just 5%. Interest subsidy schemes are also in place for manufacturing and service units, with a special mention for women-led service enterprises.
Adding a national perspective, NABARD Deputy General Manager Ramesh Babu pointed out that while MSMEs account for about 30% of the economy nationally, developed states show an emphasis of over 60%. Based on this, he predicted strong growth opportunities for the sector over the next decade.
The workshop also saw participation from Joint Director of Agriculture Chandrashekhar, who commended banks' credit support to farmers in Kodagu, noting that over 107 people had received assistance. Kodagu District Chamber of Commerce Vice-President Naveen Ambekallu was also present at the event.
