Policy

MSMEs need more support, speedy relief: Parliamentary panel to Centre

Our Bureau New Delhi | Updated on July 27, 2021

The panel’s report said that the second Covid wave “ripped the economy even more vigorously” than the first   -  Businessline

Larger package will spur demand, investment, exports and jobs, it says

The Industry Standing Committee of Parliament, headed by TRS leader K Keshava Rao, asked the Centre to immediately come out with a larger support package to boost the economy.

The panel, noting the importance of Ministry of Micro, Small and Medium Enterprises (MSMEs) in the employment generation, demanded the Centre to draft a new employment policy to address the growing rate of job loss.

Also read: Pre-packs for MSMEs: FM likely to introduce Insolvency Amendment Bill in LS on July 26

The report of the panel, titled ‘Impact of Covid-19 Pandemic on MSME Sector and Mitigation Strategy Adopted to Counter It’, pertaining to the MSMEs, observed that the Atmanirbhar stimulus package announced by the Centre for the economic revival is “inadequate”. It said the measures adopted under the scheme were more of loan offering and long-term measures instead of improving the cash flow to generate demand for immediate relief.

Covid impact

The second wave of Covid-19 ripped through the economy even more vigorously than the initial outbreak, the report said and asked the Centre to issue a larger economic package that is “aimed at bolstering demand, investment, exports and employment generation to help the economy, including MSMEs to recover from the pandemic fall-out”.

Expressing concern over the grim situation of the small enterprises, the panel wanted the Centre to ensure liquidity support to keep businesses running and generate jobs.

It also criticised the MSME Ministry for not conducting any intensive studies to ascertain the actual losses suffered by the sector due to the pandemic. It called for a detailed study to make an assessment of the losses suffered and to chalk out an effective plan for revival of the sector.

‘New policy needed’

“A new National Employment Policy may be considered along with exploring the feasibility of establishing a National Electronic Employment Exchange and building a skill-based database to provide employment to the skilled manpower in their area of expertise. Besides, the Ministry should facilitate the MSMEs to scale up their capacity building and technical know-how through extensive training and up-skilling programmes,” the report said.

Published on July 27, 2021

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