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FM to India Inc: Bring out your animal spirits

Our Bureau New Delhi | Updated on December 20, 2019 Published on December 20, 2019

Finance Minister Nirmala Sitharaman   -  PTI

MSMEs get time till January 7 to sort out credit issues with PSU banks

Finance Minister Nirmala Sitharaman on Friday asked industry to remove ‘self doubt’ on the growth prospects of the Indian economy.

She also said Micro, Small and Medium Enterprises (MSMEs) can approach any public sector bank to sort out their issues regarding finance.

Addressing the annual general meeting of industry chamber Assocham here, she listed 10 key decisions taken after the NDA government started its second term this May which is helping India stand out globally.

She also pointed that the government has shown conviction to change India’s system, take some tough decisions and make sure it is responsive to industry.

“I would appeal to you that please get out of the mood of self doubt. Can we do it? Can India do it? Why is this negative mood? Get out of this self doubt,” she said and emphasised that most of the macro economic indicators are showing positivity as inflation has been under control. FDI inflow is good and foreign exchange reserves are robust.

She urged industry captains to participate in the growth story. “Believe in India. You have done that for last 100 years. There is a need for all of you do it even more now.

“You have to be the change agent and don’t ask animal spirits to be brought to you. You have (it) inside, get it out,” she said.

PSU banks to help MSMEs

Talking about measures for MSMEs, she said, “We will make sure that stressed MSMEs will not be declared NPAs. They can be restructured without (being declared) NPAs.”

The government will ensure that these entrepreneurs get additional term loans and liquidity through their working capital requirements.

Between December 7 and January 7, MSMEs can approach any public sector bank and sort out their issues regarding finance.

Nod for infra projects

She also announced that nearly 10 infrastructure projects are ready for clearance under new mechanism for investment of ₹1-lakh crore. Also, nearly 50 real estate projects are being finalised for funding from the new alternative investment fund for real estate.

Highlighting some of the steps taken by the government post-Budget, she said that liquidity crunch was addressed, capital was infused in public sector banks as well as NBFC sector and PSU boards were professionalised.

Further, the Minister said the government slashed corporate tax in September which has made a difference and a lot of new investments are expected to flow into India.

The Finance Minister also emphasised that the government has brought in transparency and technology in tax collection and eliminate harassment.

With the introduction of faceless assessment, tax harassment is going to be a thing of past for direct taxes and effort is to introduce the same for GST, she added.

Published on December 20, 2019
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