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Good News For MSMEs. MSMEs get Rs. 25,000 crore for the Micro, Small and Medium Enterprises (MSME)

December 20, 2019
Good News For MSMEs. MSMEs get Rs. 25,000 crore for the Micro, Small and Medium Enterprises (MSME)

A special fund has been created to revive the stuck housing project like New Delhi. Similarly Rs. 25,000 crore for the Micro, Small and Medium Enterprises (MSME) sector. A fund of more than that should be created, in which MSME is not asked to give any thing as bail.

This suggestion was made by the PHD Chamber of Commerce and Industry in a pre-budget meeting with Finance Minister Nirmala Sitharan. The government's focus should be on easy availability of finance for businesses at a cheaper rate.

MSMEs have long been facing the problem of delayed receipt of their bills and receipts from their large corporate buyers and government organizations. It has therefore been suggested that punitive measures be introduced against habitual defaulters who do not fulfill their payment obligations as per the maximum agreed terms in 45 days.

Aggarwal also said that MSMEs are not able to fully implement the company law due to issues such as low availability of human resources and affordability. As such they should be exempted from prosecution provisions for minor violations in company law.

Single window system for business convenience Agarwal also useful and comprehensive in the meeting, regarding easy availability of land for industry, timely single window clearance, full implementation of policy repo rate, tax relief to increase exports, review of FTA and requirement for upgradation etc. Suggestions were given.

Agarwal said that in order to encourage domestic and foreign investments in the economy, it is necessary to increase ease of doing business with effective single window system. The most significant improvement in this regard is to ensure a single window clearance of all government departments / all clearances at one place in a time bound manner. Ensure easy availability of land Land readily available by the states as land banks should be encouraged. States can provide availability of land in their respective areas on their respective websites to attract domestic and foreign investment.

He suggested that the NITI Aayog could perform benchmarking of Ease of Doing Business Index at the district level. This will help identify problems at the grassroots level and yield fruitful results for businesses. try to increase export Aggarwal said that the export growth trajectory should also try to kick-start again. To exploit the country's export potential, it is suggested that dairy products and seafood, automobile and automotive components, weapons and ammunition, electrical machinery and equipment, defense and food processing including gems, jewelery, oil and gas , Pharmaceuticals, Sports Goods, Textile Textiles, Handlooms and Handicrafts and Raw Materials with concessions in duty to ITES and ITES Rid, should be given comprehensive facilities in production processes.

Encouragement to Rental Housing Aggarwal said that to encourage rental housing, real estate developers would be given 10 years of leave on the profits earned from rental housing as it would revive investment and boost the slowing economy. Logistics expenses to be reduced Regarding logistics, Agarwal recommended that the logistics cost in the country is more than 14 percent and needs to be reduced. Stalled infrastructure projects should be completed as soon as possible to increase the movement of goods in the country. There is a need to increase the movement of goods from one state to another.

To reduce logistics costs, cold chain infrastructure should be increased and the waste of agricultural produce should be reduced. Reduction in waste will increase farmers' income.

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