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SMEs Badly Hit By High Real Interest Rates, Need RBI, Government Support In Current Scenario: Sanjeev Sanyal
Sanjeev Sanyal. (Ramesh Sharma/India Today Group/Getty Images)
The NDA government’s principal economic advisor and noted economist, Sanjeev Sanyal, has stated that Small and Medium Enterprises (SMEs) are often the worst victims of the structural changes in the Indian economy and in lieu of this, they need adequate support to tide over the challenges, especially in the current economic situation, as reported by BloombergQuint.
He also commented on how real interest rates for Indian SMEs remain extremely high. Real interest rates are arrived at by deducting inflation rates to the nominal (actual) interest rates.
However, there are indeed positive signs with both RBI and the government working to alleviate some of the problems faced by SMEs. In their recently concluded meeting, at government’s insistence, RBI agreed to infuse liquidity to the tune of Rs 8,000 crores into the economy. The central bank also agreed to provide a loan facility of upto Rs 25 crores to restructure the stressed assets of MSMEs.
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