Strategies to Counter the Financial Problems Faced by Manufacturing Sector in Punjab-An Empirical Study of Micro, Small and Medium Enterprises

Akanksha Solanki, S Jaipur
Manufacturing is very critical to economic growth, prosperity and a higher standard of living. Finance is a crucial ingredient for economic growth. There are various financing options that are present but in order to cater the industrial growth there should be the provision of industrial finance. Well functioning banks, financial institutions and other financial intermediaries, promote technological innovation and industrial growth by providing risk capital and funds to those entrepreneurs who
more » ... entrepreneurs who have the highest probability of developing new products, production processes and competitive production facilities. The manufacturing sector faces several significant challenges: a shortage of lending, currency volatility, and fears over the sustainability of supply chains and downward pressure on prices. it is also increasingly being realized that there is no alternative to investment in manufacturing if a significant proportion of our massive, partly employed rural workforce has to be transitioned into higher income, higher skilled economic activity. The manufacturing sector in many countries is in a state of transition. Growing in emerging economies; shrinking but becoming more productive in advanced economies. The new manufacturing giants with low wage economies tend to compete on cost, the established players prefer to move up the manufacturing value chain to compete on technology and innovation. Lean manufacturing techniques which control costs and improve quality are pervasive. The present study will identify the different financial challenges as felt by manufacturers. The study will suggest how to tackle with these challenges focusing upon the different strategies. The present paper will try to identify the various Strategies that must be adopted by the manufacturing industry so as to overcome the various problems felt by them.