In a bid to support micro and small industries, the government is working on a policy to set up a social microfinance institution said Union Micro Small and Medium Enterprises (MSMEs) Minister Nitin Gadkari on Friday.

"We are framing policy for making a social microfinance institution, where finance can be available in three days up to Rs. 10 lakh for small people. This is the way we can create employment potential and that can be a great contribution for our growth", Gadkari said at a virtual conference organized by FICCI.

"I have interacted with the founder of Bangladesh's Grameen Bank Nobel Peace Laureate professor Muhammad Yunus and he has given me a note and advice on that. Yesterday, we had a long discussion. NITI Aayog and people from Indian Institute of Technology (IIT) road secretary have given me suggestions", he added.

The Minister urged the industry bodies to work on reducing the country's import bill and create employment opportunities by enhancing manufacturing activities and production in the country.

"We are trying to develop industrial clusters throughout the country especially in rural, tribal and agricultural areas", Gadkari said, adding that since social distancing is the new norm, automation and digitalization in MSMEs should be followed on a bigger scale.

Notably, in the last month, the minister had asked Muhammad Yunus to formulate his suggestions into a draft proposal with the NITI Aayog that will be put before the government for approval.