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Initiatives For The Growth And Promotion Of Me Case Study

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3. Initiatives for the growth and promotion of MSME sector
The Growth and development of Micro, Small and Medium Enterprises needs to be supported by a unified fiscal support and enabling policies. Similarly, improving and enhancing the policy framework and motivating financial institutions to innovate, can increase the penetration of formal financial services to this sector. The three main pillars are:
(i) Legal and regulatory framework
(ii) Government support
(iii) Financial infrastructure support
(i)Legal and regulatory framework
The significant role of MSME sector in economic growth has initiated the government to formulate several policies to facilitate the growth of the sector and encourage participation by financial institutions.
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The services of MSME Development Institutes and technology incubators can be increased to provide hand-holding and advisory support to enterprises. This would provide confidence to financial institutions about the viability and growth of an enterprise.
(b) Market Linkages: The government has implemented several policies to enhance market linkages of enterprises, ensuring better management of irregular revenue cycles. For this the government has appointed National Small Industries Corporation Limited (NSIC) as the key implementation agency.
(c) Technology Adoption: The adoption of technology in this sector is low, which impacts the sector’s competitiveness. In order to encourage enterprises to invest in the technology, the government also provides Credit-Linked Capital Subsidies (CLCS) for technology investments
(d) Cluster Development: A cluster is a location-based agglomeration of micro, small and medium enterprises that are faced with similar opportunities and challenges. Clusters tend to provide an ecosystem support. The government has identified cluster development as a key approach to strengthen this sector. The government provides support for skill development, technological improvement and access to finance for specific clusters.
(e) Finance Availability: The financial support is
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