Chennai: Many MSME units which are export dependant are on the verge of closure, K E Raghunathan, convenor of Consortium of Indian Associations, said today.
In a statement, he said it is going to be painful for component exporters to maintain margins which are thin already and further blow due to the circular issued by the Ministry of Commerce & Industry with capping and strapping exporters.
“Already every MSME units are facing stiff competition from other Asian countries on price. This notification is bound to add to their wees and pains already impacted for the last two years of economic slowdown.”
Stating that auto sector would be worst hit, he said this is the time the government should hold them with support to survive. ‘but in this case they are withdrawing the existing support .
On one side we want to capture the anti-China sentiments of business and increase exports, invite global investment to come in, but in reality we are pulling out the existing support to local industries, he said and appealed to the government to reconsider continuance of MEIS scheme and also increase the support under ROSCTL scheme to make garment exporters utilise the opportunity and capture the export market.