Over 78% MSMEs unsatisfied with financial package: Survey

Chennai: Across India, over 78 per cent of the 60 odd million MSMEs and 83 per cent of self-employed are unsatisfied and still unsure on how they benefit from the Rs 3,00,000 crore financial package announced by the Finance Minister, according to the final results of the All India Manufacturers Organisation (AIMO) survey.

AIMO said it conducted the ‘largest ever industry survey’ in association with D4E, a social tech enterprise and other trade bodies like Federation of India Industry (FII), Association of Indian Industry (AII), Cement Manufacturers Welfare Association (CMWA), Consortium of Women Entrepreneurs of India (CWEI), Federation of Indian Women Entrepreneurs (FIWE), First World Community (FWC), Chamber of Small Industry Asso (COSIA), Federation of Small and Medium Industries (FOSMI), Amausi Industries Association, Lucknow (AIA) covering across the length and breadth of the country.

AIMO published two earlier survey results – covering first on the predicament of industries and secondly on pain points of industry and unemployment during unlock period of three months. This final part of the survey was conducted to understand the opinions of respondents on the action taken by the government of India in revival of industry, particularly MSMEs.

According to K E Raghunathan, former national president of AIMO, the day the Prime Minister announced a Rs.20,00,000 crores financial stimulus for the revival of the economy, our MSME and self employed members were ecstatic. All of them hugely appreciated the fact that our PM had taken the single biggest financial initiative in the history of this country with his Atma Nirbhar.’

“The next day when the FM announced the details on schemes for the Industry and MSME and many other reforms including reclassification of MSME norms, all believed it was more than sufficient to tide over the crisis and rebound back from the crisis. However over the last three weeks, the positive mindset has turned into a confused mindset for many of those who responded as they have not seen the direct benefits of the package despite many visits to the banks,” said Harish Metha, national vice-president of AIMO

Kenny Ramanand, honorary general secretary of AIMO, said, “it is apparent from the survey that the quantum of Rs 3,50,000 crore or so announced is ‘adequate’ as a package for the MSME sector. But the methodology of allocation , disbursement and mechanics of implementation is still unclear among the members surveyed. Every day is important in the current situation and any delays or the uncertainties of whether or not they qualify is causing considerable business stress. Almost 74 per cent of those responded have felt the package could be better and only 9 per cent have said this is perfect while 17 per cent said no comments.”

“One of the key issues of the corporate sector respondents was the fear of lack of demand creation. Most of these respondents felt the government should have restructured the package to aid demand creation which in turn would help their businesses. Loans are made available and many are afraid to avail loans as repayments are tough in these times,” added Raghunathan.

 

NT Bureau