PM’s Rs.20 lc package welcomed
It is time for India to dream big, given the Rs.20 lakh crore package announced by Prime Minister Narendra Modi on 12 May 2020 to restart the Indian economy currently.
“It is a good step towards a great India,” said FICCI President Dr Sangita Reddy, welcoming the PM’s package with a big thank you.
“FICCI will fully support the PM’s dream of a self-dependent India and ensure all measures to make this a reality. The strengthening of the five pillars – economy, infrastructure, system, demography and demand will pave the way for India returning to a higher sustained growth path again,” she said on 12 May 2020.
ASSOCHAM has called the Rs.20 lakh crore economic package as laying a broad direction for the country’s development based on a Self-Reliant India, standing tall in the evolving new world order.
The economic package and bold reforms across all the sectors – agriculture, taxation, infrastructure, human resource and the financial system – would go a long way to attract investment and revive demand in the economy, said ASSOCHAM Secretary General Deepak Sood on behalf of the 4.5 lakh ASSOCHAM members.
The Prime Minister sensed opportunity in this adversity and is looking into path breaking reforms to unshackle the economy to reap demographic dividends, observed FIEO President Sharad Kumar Saraf in comments on the Rs.20 lakh crore package.
The increasing localisation is a fall out of Covid-19 across the globe but this will make market access for exports more difficult. However, if we can integrate into the global value chain, we are up for a quantum jump in exports, he said.
The stimulus Package should address both supply and demand side challenges emanating from Corona.
The credit availability at soft interest rates, reduced tax rates, infrastructure development would help the manufacturing to start the process from local to global.
He also noted that “opportunities of investment are knocking at our doors and the PM announcement has opened the door further. We hope States provide ease of doing business to realise this. If we miss the bus now, we will miss it for all time to come.”
Commenting on the PM’s economic package, Minister for MSME and Road Transport and Highways Nitin Gadkari has emphasized on exploring Agro MSME, Fishing MSMEs, and Forest MSMEs for manufacturing products using local raw material.
Gadkari addressed a meeting via video conferencing with the representatives of Chamber of Indian Micro, Small and Medium Enterprises and the Institute of Cost Accountants of India on impact of COVID-19 on MSMEs.
He also re-iterated that new Green Express Highways provide an opportunity for industry to make future investments in industrial clusters, logistics parks equipped with state-of-art technology.
He opined that there is need to work on decentralization of industries and focus on rural, tribal and backward areas of the country.
The Minister also said that special focus towards export enhancement is required and asked called for adopting necessary practices to reduce power cost, logistics cost and production cost to become competitive in the global market.
Further, he mentioned that there is also need to focus on import substitution to replace foreign imports with domestic production. He added that industry should focus more on innovation, entrepreneurship, science and technology, research skill and experiences to convert the knowledge into wealth.
The Minister requested support for arranging ideas to develop an IT based analysis system for rating of MSMEs to bring transparency and have result oriented and time bound processes. In addition to this, he sought support to study best practices in the world to strengthen MSME space in India.
Gadkari emphasized on importance of time in decision making while calculating cost of the projects.
Industry representatives responded during interaction, expressing concerns regarding various challenges being faced amid COVID-19 pandemic.
They also made suggestions and requested support from the government to keep the sector afloat.
Some of the major issues highlighted and the suggestions given included:
establishing special tribunal for MSME cases,
stopping SARFAESI Act for a year,
plan to ensure adequate financing option and mechanism to track efficient utilization,
plan to overcome challenge of labour shortage due to movement of migrant labourers,
provision for MSMEs considering threat of cheap import,
release of delayed payments,
restructuring of NPA accounts,
removing requirement of external credit rating and CIBIL score for bank loan,
temporarily suspending option of making appeal against MSME if any court has given the decision in favor of the MSME,
supply chain issues for finished products,
applying GST on receivables,
arranging documentation (land use permission, fire department NOC etc.) for starting industries in rural areas,
not taking margin money in bank guarantee,
plan for training on costing, best practices in MSME etc.
Gadkari assured all possible help from the government. fiinews.com
