Gadkari assures MSME sector of relief package in a couple of days

Union Minister for MSMEs Nitin Gadkari said that Indian companies need to look out for opportunities to attract foreign firms seeking to shift from China.

The Union Minister, while interacting with the members of MSMEs hosted by the Federation of Telangana Chamber of Commerce and Industries here today over a webinar, said that a number of companies including those from Japan, the US and several European countries are looking to relocate their facilities from China after the Coronavirus pandemic. India is in the best position to attract these companies.

He said the Japanese government had agreed to support relocation of companies out of China and Indian firms could look at entering into tie-ups, joint ventures and even attract FDI to engage with them and serve other markets, he said.

Stating that MSMEs are the backbone of the country’s economy being major job creators, he said that the government is aware they are now faced with tough times due to the lockdown. He assured that the Centre would come out with a major relief package in couple of days.

He assured industry representatives that he would speak to Prime Minister Narendra Modi and also the Finance Minister Nirmala Sitharaman and speed up the announcement of the MSME relief package.

Some of the industry representatives said that India should emulate the US and Japan and announce a stimulus package of similar magnitude. He said these are rich nations and they can afford to announce such relief measures. “We will also come up with a major relief package within two days,” he assured..

India is well positioned to attract FDI and achieve the PM’s goal of becoming a $5-trillion economy. In order to make this possible, the contribution from 25 lakh-plus MSMEs is critical, he said.

Representatives from various industrial associations voiced their concerns and the challenges they now face in reviving their units. They also said that migrant workers leaving for their home towns will further impact their businesses.

The industrialists wanted a comprehensive relief package for MSMEs that includes extended period of moratorium, tax rebates, early release of funds for revival, including working capital. They also highlighted the difficulties of raising funds from private sector banks.

Responding to their concerns, Gadkari said that the relief package will try and address all of their concerns. And said, “MSMEs must master the art of living during Coronavirus times”.

COMMENT NOW