Why India needs a Bharat Fund beyond the existing VC ecosystem
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Last Updated: Feb 20, 2021, 10:24 AM IST
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Synopsis
MSMEs play a pivotal role in bolstering the economy and, therefore, need to be carefully nurtured with policies and regulations which will help and sustain them.
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There is a need for Regional Exchanges to take the lead in funding MSMEs to help in putting money in the hands of small entrepreneurs based on their business size and requirement.
The COVID-19 pandemic has had a devastating effect on India’s economy, especially the Micro, Small and Medium Enterprise (MSME) sector. Employing over 100 million people, the sector’s revenue was severely impacted owing to working capital issues, disruption in their supply chain, delay in payments, and shortage of labour. The ensuing liquidity challenges continue to put the sector at risk of operating at subdued scale but innovative policy interventions like the introduction of “Funds of Funds” with the right implementation plan, will go a long way in bolstering & growing the sector.