Assam emerging as MSME investment hub: study

‘Better access to credit will spur growth’

GUWAHATI

Assam is emerging as the investment hub for micro, small and medium enterprises (MSME) in the northeast but needs alternative financial mechanisms and technologies to multiply growth, a study says.

The study, carried out by the MSME Ministry’s Export Promotion Council (EPC) with knowledge firm BillMart FinTech, was released in Guwahati on Wednesday.

Presented to the State government, the study says most of the private investment is flowing into food processing, horticulture, organic, MSMEs and petroleum-based units. These sectors generate more jobs, promote start-ups, ensure inclusive growth and sustainable livelihood.

“Assam is increasingly emerging as an epicentre for investment, both for the government and private sector, and MSMEs may generate more than one lakh direct and indirect jobs during the current fiscal, provided COVID-19 subsides,” EPC chairman D.S. Rawat said.

The study entailed assessing the hardships faced by the MSMEs, although the “demand for their products have touched the pre-COVID level”.

Lack of access to credit and banking was found to be main problem faced by the MSMEs in the northeast, 61.48% of which are based in Assam. This translates into more than 67,000 industries in the State, out of which 88% are micro units and 11.5% are small and medium units, the study said.