Ludhiana: Jittery over the ongoing recession, city-based businessmen have demanded to introduce special package for micro, small and medium enterprises (MSME) industry.

According to businessmen, drop in the GDP growth is a warning sign for the economy and the situation will get worse for the industry in the coming days.

Upkar Singh Ahuja, president of the Chamber of Industrial and Commercial Undertakings (CICU), said: “The MSME is passing through a worse time and more than 50 per cent of the units are under stress due to deep recession. In the present scenario, when the GDP is close to 5 per cent and job losses are being witnessed in several sectors, the situation can further deteriorate. We, therefore, urge the union government to introduce a special package, particularly for the MSME industry, which is facing turbulent times ever.”

He said: “As per the statistics, total registered MSMEs in India include 60,32,100 micro units, 7,28,516 small units and 28,611 medium-scale units. States with highest number of MSMEs are Maharashtra, Bihar, Tamil Nadu, Uttar Pradesh and Madhya Pradesh. But unfortunately, Punjab which used to be a torch-bearer of MSME has been left behind. The key hurdles in the state are lack of technology upgradation, no access to easy finance, difficult access to market (both domestic and export), lack of professionalism, tax terror etc. If the government really wants the MSME in the state to grow and boost the economy, income tax should not be charged on exporters from the MSME sector for at least five years and other steps too should be taken at the earliest.”

Pankaj Sharma, general secretary of the CICU, said: “Making system of collateral-free finance to the SME easy is the need of the hour as it only exists on paper. In reality, the MSME is not getting collateral-free finance. An online application system monitored by the ministry of the MSME should be ensured in order to check mess-up by banks and easy application of loan by businessmen. The government should release more funds for marketing and participation in exhibitions as the MSMEs need extensive marketing to promote their products, both in domestic as well as international markets.”

Published On : 10-09-2019

Source : Times of India