West Bengal MSMEs Get A Boost With Govt’s Loan Guarantee, Other Schemes

The West Bengal government is creating an enabling ecosystem for micro, small, and medium enterprises (MSMEs) by providing incentives like subsidies, tax breaks, and guarantees for loans, an official said.

Rajesh Pandey, Principal Secretary, MSME and textile, West Bengal, said that the MSME landscape in the state is growing rapidly.

“The state government is supporting the sector by handholding, creating an enabling ecosystem, providing incentives like tax breaks, subsidies, and guarantee for loans among other things,” he said.

The state government’s Bhabishyat Credit Card Scheme provides the MSME sector with collateral-free loans, while the regulatory environment has been simplified, assistance is provided for gaining market access.

In terms of women-centric enterprises in the micro and small business space, the state ranked second, Pandey said.

West Bengal being a major handloom textile hub, the government is encouraging the conversion of lease-hold to freehold properties, he added.

The state government needs to provide incentives for the flourishing apparel and hosiery industries to compete in the global market, the official said.

Ravi Todi, chairman, CII (eastern region), MSME sub-committee, said that the MSMEs’ contribution to India’s GDP is 30 per cent and provides employment to nearly 11 crore people. The MSME sector contributes to 40 per cent of total exports from the country.

Spanish Textile Giant Likely To Start Production

Interestingly, West Bengal Chief Minister Mamata Banerjee, who is on a 12-day overseas trip to Spain and the United Arab Emirates (UAE), has said that a Spanish textile major would soon start production in the state. The Chief Minister was participating in a three-day business summit in Madrid, Spain.

Looking for foreign investment in various sectors including MSME with an aim to generate more jobs, the state government is expected to provide approximately 100 acres of concessional land, along with other support to the company.

Taking to X and assuring that the venture would promise growth, sustainability, and a prosperous future for West Bengal, the Chief Minister in a post said, “An exciting development is on the horizon! Tempe Grupo Inditex (Zara), a major player in the textile industry, is expanding its operations. They are partnering with private entities to shift manufacturing to West Bengal, with production set to begin before Christmas 2023.”

In August this year, Banerjee, while addressing a programme for MSMEs, had urged the Bengali migrant workers to return to the state and start their own businesses.

“The state government provides a loan of INR 5 lakh to entrepreneurs to start a business. The government is itself the guarantor. Instead of going to other states, use that loan money and work here, she had said.

The West Bengal government will host the state’s yearly flagship programme ” Bengal Global Business Summit (BGBS)” on November 21-22 this year.