Policymakers emphasize need of MSMEs for economy to rebound

KATHMANDU: Policymakers from India and Nepal have emphasized on the importance of micro, small and medium enterprises (MSMEs) to revive the economy that has been adversely affected by the coronavirus pandemic.

Speaking in a webinar titled, ‘Enhancing Cooperation for MSMEs in Nepal’, Sanjay Aggarwal, senior vice president of PHD Chamber of Commerce and Industry (PHDCCI),said that it is high time that the MSMEs be given their space as the COVID-19 has now laid a firm ground to strengthen bilateral relations between Nepal and India and these businesses can play a pivotal role in reviving the economy.

Presenting a global overview about the effect of the pandemic on the economy during the program organized jointly by Nepal SBI Bank Limited (NSBL) and PHDCCI under the aegis of India-Nepal Centre and the Confederation of Nepalese Industries (CNI), Anil Khaitan, former president of PHDCCI,shared about the required response to mitigate the challenges being faced by MSMEs.

Khaitan also emphasized on the need to adopt ways for frugal innovation by businesses in these adverse times. He further said that MSMEs need a clear definition that will be immensely helpful for them to access the market efficiently.

Highlighting the importance of MSMEs for Nepal’s economy and job creation, Sushil Bhatta, CEO of Investment Board Nepal, stressed on the need to create awareness among MSMEs about skill development,entrepreneurial advancement, innovative practices and new technologies to give them a competitive edge at the regional and global platform. He also presented the challenges that MSMEs are facing with the demand and supply shocks as a result of the ongoing crisis caused by the pandemic.

Maha Prasad Adhikari, governor of Nepal Rastra Bank (NRB), in his keynote speech, called the MSMEs sector as the growth engine of Nepal’s economy. Highlighting the recent policy measures, he assured the industry that Nepal’s MSMEs are on the way to emerging stronger and can be a partner to register positive outcomes.

Anukool Bhatnagar, MD & CEO of NSBL, spoke about the financer’s perspective on MSMEs in Nepal. He presented a nuanced view on key pressing policy issues that are impacting the way banks are landing to MSMEs.

“While the credit gap is still there, Nepal has evolved as a country with a robust ecosystem for old and new businesses,” shared Bhatnagar. He also appreciated the regulatory measures of NRB that are particularly sensitive to the concerns of MSMEs.

Sharing about India’s unique and deep relationship with Nepal, Dr D K Aggarwal, president, PHDCCI, called for an enduring partnership among the MSMEs of both sides where PHDCCI as the national apex chamber of India along with its partner CNI will provide the much needed platform.

Kapidhwaja Pratap Singh, commercial representative of the Indian Embassy in Nepal, also highlighted that many importers in India are dependent on exports of Nepal, making it a two-way flow of commodities between Nepal and India. He added that localized trade is happening at a fast pace. This shows the immense networking and supply chain management between businesses of Nepal and India.