RBI to form panel to study MSME stress

MUMBAI: The Reserve Bank of India (RBI) expressed concerns over the increasing stress in the micro, small and medium enterprises industry, seeking a comprehensive approach to assess the problems faced by businesses that employ thousands of people in the unorganised sector across the country.

To identify causes and propose long-term solutions for the economic and financial sustainability of the MSME sector, RBI will constitute an expert committee. The composition of the committee and its nd its terms of reference will be finalised by the end of December, and the report will be submitted by the end of June 201
The MSME sector contributes to nearly a third of the gross domestic product and employs 111 million people, accounting for about 45 per cent of manufacturing output and 40 per cent of total exports, data from RBI showed. RBI said that many MSMEs exist outside of the formal space and face difficulty in accessing credit.