Justify the following statements.
1) SIDBI acts as an institute for promotion of MSMEs.
Ans:-
1. There are many efforts taken by SIDBI to emerge as a brand which is customer friendly towards MSME’s.
2. It facilitates and strengthens credit flow to MSME’s.
3. It identifies financial and developmental gaps in the MSME’s and takes efforts to resolve the same.
4. SIDBI has dedicated its resources to the evolution of a vibrant ecosystem. SIDBI has taken Steps for technological upgradation and modernization of existing MSME’S
5. Thus, we can say that SIDBI acts as an institute for promotion of MSME’s.
2) SIDBI provides different types of financial and non-financial services through its subsidiaries.
Ans:-
The following are the subsidiaries of SIDBI that provides financial and nonfinancial services:
1. SIDBI Venture Capital Ltd. provides venture capital to emerging sectors, such as life sciences, biotechnology, pharmaceuticals, engineering, and information technology.
2. Credit Guarantee Fund Trust for Micro and Small Enterprises is a trust to implement the Credit Guarantee Scheme through which credit faculties are extended without third party guarantee on collateral security by eligible lending banks/financial institutions.
3. SME Rating Agency of India Ltd. was set up by SIDBI, Dum & Bradstreet Information Services India Pvt. Ltd. and several public, private and foreign sector banks as an MSME. It is a dedicated third-party rating agency and prov1de comprehensive, transparent, and reliable ratings and risk profiling.
4. India SME Technology Services Limited is a platform where MSME’s can tap global opportunities for acquiring new emerging technologies and establish business collaborations.
5. India SME Asset Reconstruction Company Ltd. is an asset reconstruction company. It acquires non-performing assets and tries to resolve them through its innovative mechanisms. It especially focuses on the non-performing assets of the MSME sector.
6. Micro Units Development and Refinance Agency is established for ‘funding the unfunded’ micro-enterprises in the country.
7. Thus, SIDBI provides different types of financial and non-financial services through its subsidiaries.
3) The NABARD has been recognized as the apex institution for agricultural finance.
Ans:-
1. India is an agricultural country.
2. Agriculture and its allied activities act as the main source of livelihood for most of the rural population of India.
3. The government of India is aware of the need of boosting institutional credit in rural economies.
4. The RBI constituted a Committee to review the arrangements for Institutional Credit for Agricultural and Rural Development under the Chairmanship of Shri B. Sivaram, to take a review of agricultural credit in India.
5. The recommendation of the Committee was accepted and National Bank for Agriculture and Rural Development came into existence on July 12, 1982, under the special Act of the Parliament, with the objective of providing credit and other facilities for the development of agriculture.
6. Thus, we can say the NABARD has been recognized as an apex institution for agricultural finance.
4) KVIC plays an important role in development of entrepreneurship.
Ans:-
1. Entrepreneurship Development is one of the major functions of KVIC.
2. KVIC helps to provide additional livelihood avenues to the village communities.
3. KVIC generate self-employment opportunities through establishment of microenterprises by organizing traditional artisans and unemployed youth. It increases the earning capacity as well as prevents migration.
4. KVIC actively participates in many international trade exhibitions for popularising its products in international markets.
5. Thus, we can say that KVIC plays an important role in the development of entrepreneurship.
5) Mutual Trust is the soul of SHG.
Ans:-
1. Most of the Indian villagers are facing challenges such as poverty, illiteracy, lack of skills, health care, etc.
2. There is a need for group efforts to solve these problems.
3. The basic philosophy of forming SHGs is to overcome individual shortcomings and weaknesses with collective efforts.
4. Through mutual trust, thousands of poor and marginalized individuals are building their lives, their families, and their society.
5. Thus, we can say mutual trust is the soul of SHG.
6) SHGs plays an important role in empowerment of women.
Ans:-
1. The empowerment of women through SHG’s would lead to benefits not only to the individual women but also for the family and community as a whole.]
2. The SHGs empower women and train them to take an active part in the socioeconomic progress of the nation.
3. SHG develops saving habits among women.
4. It enhances the status of women as they participate, lead, make decisions, and get benefited through collective efforts Thus, we can say that SHG’s play an important role in 1n the empowerment of women.
7) World Bank plays vital role in social development.
Ans:-
1. The World Bank work with governments, communities, civil societies, private sectors, and the marginalized ‘ for the cause of social development.
2. Social development promotes economic growth and leads to a higher quality of life.
3. The World Bank’s work on social development brings voices of the poor and vulnerable to the development process.
4. World Bank is also undertaking timely social risk analysis, including poverty and social impact analysis.
5. Thus, the World Bank plays a vital role in social development.