Women-Led Small 'Businesses' Disproportionately Impacted By Credit Constraints: MoS Finance

Union Minister of State for Finance Bhagwat Karad on Wednesday said small businesses run by women are impacted disproportionately by credit constraints. After inaugurating the first meeting of the G-20 working group on trade and investment, the minister said that women suffer disproportionately. "...women-owned MSMEs (micro, small and medium enterprises) are disproportionately affected by the credit constraints and various other gender-based barriers," an official statement quoted Karad as saying.

To address and rectify this disproportionate burden of trade cost, Karad proposed for collective action by the international trade community. He also highlighted the widening gap between developing and developed countries, and added that the same gets further exacerbated during pandemics and geopolitical crises. There is a need for efficient and resilient global supply chains, said the minister, asking G-20 member countries to collaborate in designing interventions that will diversify GVCs (global value chains) in critical sectors such as food, fertilizers, energy and pharmaceuticals, the statement said.

The meeting, which has over 100 delegates from G-20 countries, invitee countries, regional groupings and international organisations, involved two closed-door sessions on making trade work for the growth and prosperity, and way forward for building resilient GVCs, it said. Delegates will deliberate on integrating MSMEs in global trade and building efficient logistics for trade, the statement said. Experience zones on spices, millet, tea and coffee have been set up at the meeting venue and an exhibition on textiles is also on display, as per the statement.

Union commerce secretary Sunil Barthwal said under Indian Presidency, the aim of the G-20 member countries is to achieve shared outcomes for making growth inclusive and resilient, increasing the participation of developing countries and the Global South in GVCs, and building resilient GVCs to withstand future shocks.

(PTI)