Speedy reforms, Implementation key for MSMEs revival - CII

By 1 2 1 News Reporter

Chandigarh 19^th June:--Speedy reforms and policy measures need to be adopted and implemented both at central and state level to revive the Micro, Small & Medium Enterprises (MSME) sector which is facing severe slowdown. The sector which provides employment to over 8 Crore persons in India, contributes 8 per cent of the country's GDP, 45 per cent of its manufactured output and 36 per cent of its exports needs immediate attention", emphasised Mr Raman Saluja, Chairman, Confederation of Indian Industry (CII), NR Committee on MSMEs & MD, Oriental Engg Works Pvt.Ltd during a Press Conference at CII's NR Headquarters, here today.

"In north, 71.15 lac MSME enterprises (27.3% of India's total MSMEs) provide employment to approximately 1.53 crore people i.e. 25.8% of national MSMEs, hence it really needs favourable policies in current scenario", he emphasised. 

He strongly called for a collaborative effort on the part of centre and state governments and agencies, banks and Financial Institutions to ensure that the schemes like cheaper credit, easy lending, collateral free loans and various other exemptions etc laid down for the benefit of MSMEs are implemented in true spirit. "Another area of concern is the lack of awareness amongst the MSMEs about these schemes. To address this issue and to increase awareness about various government schemes, CII would hold Informative Roadshows in association with the Ministry of MSMEs, Financial Institutions (FIs), Finance Ministry and banks all across north to share the schemes in details so that MSMEs can take benefit", he informed.

CII is handholding MSMEs and providing them expert advice and guidance on aspects like finance, credit, taxation, government schemes and marketing support through its dedicated MSME Help Desks across various states. We are launching a dedicated regional CII MSME Helpdesk, comprising a team of professionals at CII Chandigarh headquarters in near future as well.

"To ensure better and cheaper flow of credit to MSMEs, the Government is implementing the "Credit Guarantee Scheme" which is a welcome move but the limit should be raised from 1 crore to 5 crore, considering the present scenario. More such schemes should be initiated to provide MSMEs with easy and cheap access to credit. CII has also been advocating for interest subvention of 2% to the MSME sector taking into account its overall contribution to the national economy as is given to the Agriculture Sector. The smaller units between 10 – 50 crore Turnover should also get these benefits. Similarly, we also need to look at alternate financial schemes like Private Equity, Venture Capitalists, Angel Funds etc to fill the deficit of US $ 29 billion of credit needed by the MSMEs", he added.

"There is a dire need to revisit the MSMEs definition, considering the high costs of Plant & Machinery. Separate labour laws are also needed for MSMEs to encourage them to grow. We are taking up these issues regularly at the various Ministry levels and in the Inter Ministerial Group on MSMEs, of which CII is a member", he shared.