80% of small and medium-sized businesses ‘insecure’ of the future, according to CIA survey

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About 80% of small and medium-sized enterprises (SMEs) across India are “insecure” of their future following the first and second blockages induced by the wave of Covid, a survey conducted by the Consortium of Indian Associations (CIA ) and its 40 partner associations of PME shows.

The survey covered 81,000 self-employed workers and micro or small enterprises (SMEs) and revealed that 78% of them had not made a profit during the last financial year.

“Over the past year, the CIA has provided vital suggestions and required changes on several initiatives taken by central and state governments for the benefit of MSMEs. to bring out weak points and provide solutions and a way forward to revive the sector, ”said CIA official KE Raghunathan.

The report presented three-pronged ideas, free from statutory conformities, protecting SMEs from high interest burdens and supporting liberal loans, which the government should adopt in its approach to SMEs.

To ensure that appropriate attention is given to issues specific to this sector, the report suggests that there should be a separate ministry for SMEs for the self-employed and micro / small enterprises.

The CIA also proposed to the government to amend the 2006 Micro, Small and Medium Enterprise Development Act to strengthen state facilitation councils.

“Micro-small business facilitation centers should have more power to conduct procedures in a transparent and time-bound manner, and enforce the payment of specified interest on injured MSMEs. The government must also make changes to the GST law to make it a small business. friendly, ”said Ravi Sood, general secretary of the Badli Industrial Zone Association.

According to the report, the law regarding land used by industries, especially MSMEs, needs to be revised as they do not contribute to the growth of the sector. It states that MSMEs should be allowed to hold freehold industrial property titles so that they can use them to obtain loans and other facilities.

And to avoid the hype, the requirement to obtain a separate factory license to install a unit in a government-approved industrial zone should be removed.(Edited by Purnima Priyadarsini)

Read also: Bonanza for MSMEs! World Bank approves $ 500 million program for Indian businesses

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