The FSME India requested Prime Minister Narendra Modi to provide a supplementary special package worth Rs. 5 lakh crore for the MSME sector’s revival as soon as possible. A variety of initiatives have been made to assist the companies having MSME Registration. However, because the Covid-19 crisis has ruined the market, there is a lot that has to be done. In this article, we will discuss FSME Seeks Centre’s Support to MSMEs.
Companies having MSME Registration have been critical to India’s development. There are around 6.3 million MSME enterprises in India, employing 12 million people and producing 8,000 distinct commodities. Services employ 45 percent of manufacturing workers, produce 40% of exports, and employ over 28% of the workforce.
According to sources, in terms of APK Reddy, President of the Federation of Small and Medium Enterprises of India, lockdowns induced by the first and second waves of the epidemic, as well as accompanying constraints, have put a high-pressure situation on the country’s crucial industry especially companies with the MSME Registration.
FSME Seeks Centre’s Support to MSMEs
The authorities have also issued a warning regarding the third wave. If this occurs, MSMEs will once again be on the receiving end of the problem and would face further difficulties. If the Central Government does not intervene and declare a Rs 5 lakh crore stimulus plan specifically for the important MSME sector, thousands of MSMEs would close their doors and more small-scale businessmen will take to the streets.
The RBI will establish a State Level Bankers’ Committee (SLBC)
FSME India requests that the ministry instruct the Reserve Bank of India to prolong exemption from NPA rules to a minimum of 18 months, rather than the current 180 days. The Reserve Bank of India (RBI) should establish an exclusive State Level Bankers’ Committee (SLBC) for the manufacturing sector.
The industrial SLBC was created by Dr. YS Rajashekar Reddy as United Andhra Pradesh Chief Minister. He also called for the clearance of governmental and private sector organizations’ payments overdue to SMEs in Telugu, Andhra Pradesh, and Telangana. As with the GST, the central government should adopt a common economic policy for all territories. Commercial licenses should be monitored and permissions provided to remain competitive in the market. Many companies having MSME Registration are going to be damped by the excess supply.
Another of the market’s persistent objectives is to simplify the GST and lower the tax rate, which is essential since the industry resurrects and adjusts to the new norm. The government can establish a strategy to help MSMEs recuperate from the cash crisis by raising the SME’s customers’ invoices, particularly big companies, which can pay the GST to the Government directly. This guarantees that SMEs do not hold working capital in GST.
While the government has proposed various initiatives, MSMEs want a comprehensive package of subsidies that address all of their issues.
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