Small businesses account for nearly a quarter of India's economy
Even as the government reviews strategies to support the Micro, Small and Medium Enterprises (MSME) sector, the small firms believe that the nationwide lockdown to fight the COVID-19 pandemic could result in significant job losses if not adequately addressed. Speaking to NDTV, Rajan Chadha, Director of Tritronics India Pvt Ltd said: "Over ten crore employees face an uncertain future, with employers having to choose between lay offs and complete shutdowns to avoid bankruptcies and wiping off their entire equity capital, savings."
Small businesses account for nearly a quarter of India's economy and believe they need immediate non-performing assets (NPA) protection and an emergency release of pending payments from the government.
Captain RK Gupta, owner of MRS Corporation says, "MSME units which were standard as on January 1st, 2020 (even if under default) must not be considered as NPA till at least September 30th, 2020 and must be made eligible for all assistance being made available to MSME units"
The MSME sector contributes to over 40 percent of India's total exports and manufacturing and many believe cash flow assistance and payroll protection is the need of the hour
"There is need for direct cash transfers to MSME units to help pay wages and salaries, rentals, electricity bills for at least three months. MSMEs also need some relaxations in payment of GST, Provident Funds, Employee State Insurance and other statutory dues" Tritronics India's Mr Chadha said.
Small enterprises also hope for demand creation and marketing assistance by strict implementation of the 'Make in India' clause.
Meanwhile, while addressing a webinar on Saturday, Union MSME Minister Nitin Gadkari said that the central government is likely to announce a relief package for the sector soon.
"We have sent recommendations for a relief package to the Finance Minister and Prime Minister, and I hope it will be announced soon," news agency PTI quoted Mr Gadkari, as saying.
Last week too, during an interaction with representatives of Associated Chambers of Commerce of India (ASSOCHAM), Mr Gadkari had spoken about a "dedicated fund" of Rs 1 lakh crore for the MSME sector.
