Bangalore: Every bank branch should hand-hold a Dalit enterprise, as such a step can have a ripple effect not only on the economy but also on the society in general says, Finance Minister P Chidambaram.

Launching the first-ever Dalit industries-focused social impact fund, DICCI SME Fund, the minister rued that even after 66 years of Independence, the country still reeks of casteism and social segregation.

The government is committed to improve the lot of the MSME sector in general and those promoted by the Dalit community in particular, he said, adding the MSMEs contribute to eight per cent of the GDP, 45 percent of manufacturing, and 36 per cent of exports of the country.

"If all the bank branches, running into a little over one lakh, and each one of them support a Dalit enterprise, it can have large impact on the economy and the society in general. And I want each bank branch to handhold a Dalit entrepreneur each, and then we will have one lakh flowers blooming in the country," Chidambaram told the meeting.

Calling for more affirmative action to rid the society of the caste evil, he said socially and financially affirmative and inclusive actions like reservations for the under-privileged are the way forward. The venture capital fund, initiated by the Dalit Indian Chamber of Commerce & Industry (DICCI), aims to raise Rs 500 crore which would be deployed over the next 10 years to finance Dalit entrepreneurs.

The fund, approved by SEBI, was launched with an initial contribution of Rs 10 crore by the Small Industries Development Bank of India.

"It is a modest beginning, all path-breaking projects begin on a modest scale, I am sure, one day this will grow into a massive tree," said Chidambaram, highlighting that the first Dalit fund will go a long way in creating social equity.

"The fact that the first Dalit fund is being launched at the iconic ball room of the historic Taj Mahal hotel in the nation's financial capital is very significant," he said, and regretted that the country has for centuries masked the fact that discrimination took place.

The Constitution provides for equality as also affirmative action, he said, adding "Reservation may be a blunt instrument, but it is an useful instrument in the absence of a better alternative."

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