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    Question

    As per the UK Sinha Committee, which of the following

    measures was proposed to improve the financing of MSMEs?
    A Reduction of GST rates for MSMEs Correct Answer Incorrect Answer
    B Establishment of a "Fund of Funds" to provide equity support to MSMEs Correct Answer Incorrect Answer
    C Tax exemptions on all MSME-related transactions Correct Answer Incorrect Answer
    D Introduction of direct lending programs by the Reserve Bank of India Correct Answer Incorrect Answer
    E Providing MSMEs with an automatic credit line through public sector banks Correct Answer Incorrect Answer

    Solution

    One of the key recommendations of the UK Sinha Committee was the establishment of a "Fund of Funds" to provide equity support to MSMEs. This fund would help MSMEs access venture capital and private equity, facilitating their growth and innovation.

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