FinMin Urges Banks to Incentivise MSMEs following Sustainability Standards (1/11/2022)
FinMin Urges Banks to Incentivise MSMEs following Sustainability Standards
The Finance Minister has advised banks to support MSMEs that have adopted certain sustainability standards for manufacturing. The move is part of the government’s efforts to encourage MSMEs to become responsible manufacturers.
The significance of this policy can be seen in wake of India’s current negotiations with key economies like the UK and the EU for modern free trade agreements (FTAs) that tend to link market access with sustainable manufacturing practices.
The Department of Financial Services (DFS) has suggested some policies approved by the board, for incentivizing ZED-certified MSMEs. ZED (Zero defect, zero effect) certification is granted by the MSME ministry to those eligible units that comply with certain sustainability standards which protect the environment.