The association and its members conducted a survey in June of this year among more than 81,000 self-employed workers and entrepreneurs running micro and small businesses.
Ease of doing business for MSMEs: The Consortium of Indian Associations (CIA), a leading MSME body representing about 50 MSME associations across the country, has urged the government to create a separate ministry for microenterprises to better target and support policies for microenterprises. micro-entrepreneurs. The demand arises from the fact that more than 99% of the companies in the MSME category are micro-units, whose turnover is less than Rs 5 crore, which is not comparable to the companies whose turnover is less than Rs 5 crore. business reaches Rs 250 crore. According to the 2020-21 annual report of the Ministry of MSMEs, out of 6.33 crore of MSMEs in India, 6.30 crore are micro-enterprises, while 3.31 lakh are small units and only 5,000 are medium-sized companies representing 0.52% and 0.01% of the estimated total. MSME, respectively.
“How can we have the same lane on a highway for a cyclist and a truck? This is exactly what is happening on behalf of MSMEs. A business with a turnover of Rs 1 lakh per month and Rs 20 crore per month are both referred to as MSMEs. All of this is manageable when things are going well but certainly not when there is chaos. Now we cannot give any stimulus or relief to any business in the country, even if we want to. For example, we offer the same recovery plan for a company engaged in the management of a trade fair or a transporter or a manufacturer, or an exporter or a training institute. Giving one drug for all problems makes it impossible to expect a cure unless luck saves the patient, ”said KE Raghunathan, CIA official at Financial Express Online.
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The association and its members conducted a survey in June of this year among more than 81,000 self-employed workers and entrepreneurs running micro and small businesses. The survey noted that 73 percent of SMEs made no profit in FY21 while 88 percent of those surveyed had not yet benefited from any of the stimulus packages introduced by the government.
To help micro-businesses recover from the impact of Covid, the CIA has also suggested that the government exempt units from the GST for two years as well as from the PF / ESI exemption for two years. Other key demands were an unconditional moratorium on all types of loans below 2 crore rupees to start EMI payments from September 2022 and until then with interest to be in line with RBI Repo interest, immediate clearance of all pending contributions payable by central public sector units, state-owned enterprises and enterprises offer additional loans to all micro-enterprises seeking funds without any eligibility conditions up to 50 percent of their current facility, waive capital gains tax on the sale of factories in order to settle loans and reinvest in the business, open fair-priced stores and offer fixed-price raw materials for one year and with credit conditions for micro-entrepreneurs, etc.
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