NE entrepreneurs must fill gaps in local economy: FM
NEW DELHI: Entrepreneurs in the North East region should see the opportunities in areas like warehousing, aggregation of local produce and last mile connectivity and seek banks’ help to tap the export markets, finance minister Nirmala Sitharaman told businessmen at an interaction in Guwahati on Thursday.
The minister is in Assam as part of a series of post-budget interactions in different parts of the country, accompanied by senior officials in the finance ministry. Sitharaman told traders and businessmen what she saw as critical gaps in the local economy, which once addressed, could give a leap to the local economy. Sitharaman flagged absence of aggregators for local produce as one such critical gap that needs to be addressed.
North east has a lot of endowments and products on offer but one big challenge is the want of people belonging to the North East taking up the bridging role, the minister said. “There is no aggregation in the economy which lubricates the economy here. There are organic products but we find it difficult to find who can aggregate it and export it,” the minister said, highlighting the need for a local network which can do it economically, whether it is branded items or non-branded. Warehousing and last mile connectivity are the other areas that needs attention, she said.
“It is also for the local entrepreneurs to see the opportunity and come into warehousing, seek banks’ help. Banks can also provide you additional capital,” the minister said. Aggregation, last mile connectivity, together with warehousing, will help the North East region to solve many of its economic problems, the minister said. “You can directly send it over to South East Asian nations. You can directly send it over to Bangladesh. You can always look at Indian ocean islands. You have a great advantage. All of us have to go to those key gaps and fill them.”
Finance secretary TV Somanathan, who was present on the occasion, told businesses that the government’s ₹50,000 crore loan guarantee scheme for covid affected sectors (LGSCAS) would be extended by another three months. The scheme is meant for augmenting healthcare facilities in rural and urban areas other than eight metropolitan cities, and focuses on backward districts.