Pune: ACCA (Association of Chartered Certified Accountants) has launched a report titled ‘MSME: THE AGENT OF ECONOMIC GROWTH AND DEVELOPMENT IN INDIA’, showcasing the rapidly evolving MSME landscape. ACCA has provided a handy checklist of recommendations for MSMEs to help them navigate their recovery roadmap to emerge stronger and resilient.
The report provides an in-depth insight into the various financing options available to MSMEs, including asset-based finance, alternative debt, hybrid instruments, and equity, as well as discusses how accountants can help MSMEs understand the complexities of available financial instruments, help them navigate the recovery, available opportunities and facilitate access to credit.
Micro, Small and Medium Enterprises (MSMEs) are the growth drivers of the Indian economy and play a critical role in the equitable socio-economic development of the nation. The contributions of the sector are essential for fulfilling the vision of Aatmanirbhar Bharat, i.e. creating an economically self-reliant nation. The COVID-19 pandemic, however, has adversely impacted the sector, and disrupted its growth.
The report points towards several initiatives undertaken by the Government of India, to address the pressing challenges faced by the sector, promote ease of doing business, and boost its economic revival.
Md. Sajid Khan, Head of International Development, ACCA said, “The MSME sector with its inherent agility and dynamism along with the supportive government policies, is all set to overcome the current crisis. During these times, the role of an accountant becomes even more important as a trusted adviser that can guide a MSME through this challenge to develop a robust business which acts ethically and responsibly.”
The MSME sector in India is ripe with growth opportunities, provided the businesses leverage the existing resources and introduce key changes in the way they function, to unlock and achieve their true potential.
The report helps analyse how the government has come out with stimulus packages to boost the MSME industry. These packages prioritize immediate financing needs while paving the way for strengthening and rebuilding SMEs.
To provide an impetus for growth of MSMEs, ACCA’s report examines the opportunities that can help strengthen them by creating an ecosystem of innovation and collaboration.