As FM Changes Definition Of MSME, Auto Industry Gives A Thumbs Up
The beleaguered auto industry has unanimously hailed the measures announced by the government today. Industry associations have claimed that that this would give a big boost to the MSME sector, which has been under severe stress due to the lockdown. Finance Minister Nirmala Sitharaman on 13th May’20 said that the definition of the Medium, Small and Micro Enterprises (MSME) has now been changed so that they can grow in size and get benefits. The first tranche of the announcement has 15 relief measures, of which six pertain to the micro, small and medium enterprises (MSMEs).
When the Press Briefing by FM was going live, Dr. Pawan Goenka from Mahindra and Mahindra (M&M) tweeted, “Certainly a big boost for MSMEs. Should go a long way in strengthening MSMEs beyond COVID19. Public procurement, receivable clearance are big steps.
“Investment limit, which defined MSMEs, has been revised upwards. Additional criteria being brought in is turnover size - earlier differentiation between manufacturing and service MSMEs will be categorised similarly,’’ the FM stated while making the announcements.
Terming the first tranche of Economic Revival Package as timely and pragmatic, President ACMA, Deepak Jain, said, “The Change in the definition of MSMEs has been a long-standing recommendation of ACMA. With this new classification, a significant number of ACMA members stand to benefit as the sector is dominated by smaller enterprises. That apart, infusion of liquidity through the collateral free automatic loans and the subordinate debt scheme, will ease the severe challenge of working capital being faced by the sector.”
N. Venkatram, CEO, Deloitte India, on the announcements made by Finance Minister today. “_The announcement made over the last two days is one of the most important steps we are taking post-Independence. Swadeshi 2.0 will be about an industrial resurgence, welcoming foreign manufacturers and technology into India, and creating world class products in India for domestic consumption as well as for export. A confident, stronger, dependable and predictable India is key to active participation in the global supply chain. This is a long term story we are building. We should not look for easy solutions for the short term, but aim to be in a better and financially stronger place in 3 to 5 years. Revival of entrepreneurship and required regulatory changes will result in a radically transformed India in 10 years from now.”
