The government has asked the stressed MSME sector to look for opportunities in the COVID-19 crisis, by moving away from China. Union Minister Nitin Gadkari urged the industry to replace foreign imports with domestic production.
"This is an opportunity for India," Gadkari said, citing the example of Japan where the government asked the industries to withdraw their investments from China and move elsewhere.
The minister has been holding video conferences with various industry bodies for the past a few days. He had assured them that the government's plan is to double its spending in the infrastructure by building highways so that people get money in hand, and jobs are created to tide over the economic crisis caused by the pandemic.
As the lockdown eases out and focus shifts to increasing economic activities, revival of the sector for large scale employment generation, leading the way for sustained economic growth, becomes imminent, Gadkari added. He was speaking to industry bodies on Friday.
Referring to the revival of MSME sector, the minister mentioned that industry should pay special attention towards export enhancement, and necessary practices be adopted to reduce power, logistics and production costs to become competitive in the global market. He emphasised on usage of PPE (masks, sanitizer, gloves etc.) and advised the industry to take steps to maintain social distancing while resuming the offices/business operations.
Gadkari said the government will soon announce Rs 10,000 crore fund to help the MSME sector. Under this scheme, the government will buy 15 per cent equity of those well-rated companies which go public by listing themselves on the stock exchange.
He said all efforts were being made to make payments to MSMEs immediately and all government departments have been given such directions. Further, he assured all possible help from the government to tide over the challenges created by the lockdown imposed to curb the spread of COVID-19.
The minister said work on Delhi-Mumbai Expressway is already on and added that this provides for an excellent opportunity for industry to make future investments in industrial clusters, industrial parks, smart villages. He urged that such proposals be submitted to National Highways Authority of India.
The industry listed several issues that demand government intervention. These include extension of moratorium for at least six months, enhance working capital loan limit for MSMEs, waiver of charges on utility bills, inclusion of certain goods in the category of essential commodities, payment of salaries to workers during lockdown from ESI and Provident Fund reserves, and making all expenditure incurred on education and health institutions tax free.
