(MENAFN- KNN India) Karnataka government is planning to formulate a separate policy for Micro Small and Medium Enterprises (MSME) sector, said State Minister for Small Scale Industries Satish Lakshmanrao Jarkiholi adding that the MSME sector could not be ignored as it employed over 30 lakh people and is a major contributor to the growth of the State.

While addressing the Confederation of Indian Industry's (CII) 'MSME Conference 2015' here on Wednesday, "The issues faced by MSME sector primarily stem from the fact that MSME policies followed now are archaic and funds allocated are not utilised efficiently as it is not percolating down the system."

The need of the hour is a comprehensive policy for MSME sector in the State and the State government is working to introduce such a policy which will bring development and growth for the sector.

"However, the key issue here is proper implementation of the policy to the sector," he added.

CII's MSME Conference 2015 deliberated on key issues and challenges faced by the sector, availability of finance and credit, globalisation and implementation of IT. Over 200 delegates attended the conference.

SN Rangaprasad, Director, MSME Development Institute, said the government had introduced several schemes to help Indian MSMEs compete in the global markets and overcome challenges posed by the entry of multinationals in domestic markets.