‘Cut capital investment cap to ₹5cr for MSMEs’

Posted under: MSME's
Date: 2023-10-10
‘Cut capital investment cap to ₹5cr for MSMEs’

The government should reduce the limit of minimum investment to avail capital subsidy under the Rajasthan Investment Promotion Scheme, 2022, to push the development of the MSME industry in rural areas and curb migration to urban areas, said Radhika Pachar, a hospitality expert. Addressing a gathering, Pachar said that initially the capital investment required was 5 crore, which has recently been increased to 25 crore for availing of the capital subsidy ranging from 10 to 13%. “Even though an interest subsidy of 50% is given to MSMEs, raising the investment limit reduced the effectiveness of the incentive. For MSMEs in rural areas, an investment of Rs 25 crore is a big ask. If the threshold is reduced to 5%, it will attract more entrepreneurs,” she said. Pachar, also a chartered accountant, said that the government should develop craft bazaars for craftsmen along the lines of haats.