September 1: Experts from India and Nepal stressed on the role that Micro, Small and Medium Enterprises (MSMEs) can play to rebound the economy that has been reeling under the crisis of Covid-19 and the extended lockdown in the region.

Senior Vice President of the PHD Chamber of Commerce and Industry (PHDCCI) Sanjay Aggrawal said during a Webinar conference held on August 31 that it is high time that the MSMEs be given their space as the Covid-19 pandemic has made a firm ground for strengthening bilateral relations between India and Nepal and these business can play pivotal roles in economic rebounding.

Anil Khaitan, former president of PHDCCI, presented a global overview about the effect of the pandemic on the economy and the required response to mitigate the challenges being faced by MSMEs during the interaction organised jointly by Nepal SBI Bank Limited (NSBL) and PHDCCI under the aegis of India-Nepal Centre and the Confederation of Nepalese Industries (CNI).

“In these adverse times, it is utmost important that businesses adopt the ways for frugal innovation,” a joint statement issued by the organisers quoted him as saying.

According to Khaitan, the MSMEs need a clear definition that will be immensely helpful for letting them avail the market conditions efficiently.

Speaking at the same online interaction entitled ‘Enhancing Cooperation for MSMEs in Nepal’, CEO of Investment Board Nepal (IBN) Sushil Bhatta highlighted the importance of MSME for Nepal's economy and job creation.

He stressed on the need of creating awareness in MSMEs for the skill development,
entrepreneurial advancement, innovative practices, new technology to give them a competitive edge at the regional and global platforms.

Bhatta also shed light on the challenges MSMEs are facing with the demand and supply shocks with the ongoing crisis emerged through the pandemic.

Governor of Nepal Rastra Bank Maha Prasad Adhikari in his keynote speech called the MSMEs sector as the growth engine of Nepal’s economy. Highlighting on the recent policy measures, he assured the industry that Nepal’s MSMEs are on way to emerge stronger and can partner for registering positive outcomes.

Similarly, Kapidjwaja Pratap Singh, commercial representatives at the Indian Embassy in Nepal, said many importers in India are dependent on exports of Nepal, making it a two-way flow of commodities between India and Nepal. He added that localised trade is happening at a fast pace. This shows the immense networking and supply chain management development by business between India and Nepal.

“In the recent past, the trade between India and Nepal has reached to around 85 percent peak of pre-Covid times both in terms of exports and imports,” said Singh.

Anukool Bhatnagar, MD and CEO of NSBL, in his presentation discussed financer's perspectives on the MSME's in Nepal. He presented a “nuanced view” on key pressing policy issues that are impacting the way banks are lending to MSMEs. While the credit gap is still there, Nepal has evolved as a country with robust ecosystem for the old and new businesses, he reportedly said. Bhatnagar also appreciated the regulatory measures of NRB that are particularly sensitive to the concerns of MSMEs.

 Dr D K Aggarwal, president of PHDCCI, shared about India’s unique and deep relationship with Nepal.