In a communiqué sent today to Union Finance Minister Arun Jaitley, the Action Committee for Formal Finance for Non-Corporate Sector (ACFFNCS), an interest group, has urged him to form a joint committee comprising Ministry of Finance, Ministry of MSME and RBI immediately in pursuance of his announcement made in the Budget speech for providing financial architecture for non corporate sector.
The lobby of traders has said that Prime Minister Narendra Modi has already initiated a process of financial inclusion with the inauguration of Pradhanmantri Jan Dhan Yojana on 29 August and, along the same lines, inclusion of the non-corporate sector shall prove a further “big and constructive” step of the government.
Praveen Khandelwal, national coordinator of the group and also secretary-general of the Confederation of All India Traders (CAIT), in his communication to Jaitley, has also urged him to include representatives from non-corporate sector, banking and financial experts so that the committee demanded may study the ground realities and participation of non-corporate sector businesses in drawing financial architecture is ensured.
It is recalled that Jaitley, in Para 102 of his Budget speech, had said that SMEs formed the backbone of the Indian economy. There is a need to examine the financial architecture for this sector and, in this regard, he proposed to appoint a committee with representatives from the Finance Ministry, MSME Ministry and RBI to give concrete suggestions in three months, Khandelwal recollects.
The ACFFNCS has lauded the announcement of the Finance Minister, noting that “for the first time any government has officially spelled out the importance of the non-corporate sector and has announced concrete steps for its financial inclusion”. The non corporate sector — consisting of traders, transporters, truck operators, SMEs, self-employed groups, hawkers, women entrepreneurs and other sections — provides employment to about 46 crore people in the country. “If a viable financial architecture is offered to this sector, its present contribution of 45% to national GDP can rise to any extent,” the group says. Further, in such an event the domestic exports will get a boost which will help in curtailing the current account deficit, it said.
The group complimented Jaitley for such a landmark step and assured its “utmost cooperation” with the government in designing a strong financial architecture for the non-corporate sector.