Economic Survey 2019: Policies to unshackle MSME sector needed for growth; need to focus on 'infant' firms
Updated : July 04, 2019 01:56 PM IST
The Survey calls for incentivising 'infant' firms instead of 'dwarf' firms through various measures such as sunset clause and reorienting Priority Sector Lending (PSL).
According to the Survey, 'dwarfs' account for more than half of organised manufacturing firms in the sector but only contribute 14 percent to employment and 8 percent to productivity.
The Survey said that 'dwarfs' consume vital resources that could possibly be given to 'infants', necessitating a "re-calibration of policy towards supporting infant firms".
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