FISME congratulates BJP for winning 2019 General Elections, pins hopes on the govt to revive the country’s MSMEs
FISME President Animesh Saxena said that the new government should implement the recommendations of the Expert Committee on MSMEs set up by the Reserve Bank of India which are likely to be presented by June end.
The Federation of Indian Micro, Small, and Medium Enterprises (FISME) congratulated Bharatiya Janata Party (BJP) for its win in Lok Sabha Elections 2019 for the second term and pinned hope that the government will work towards reviving the country’s MSME sector facing distress, KNN India reported.
FISME President Animesh Saxena commented on the poll results and said, “MSME sector is passing through deep distress born out of the combined effects of demonetisation, GST, and slow economic growth. Due to upheaval in the banking and finance sector and insolvency process of large corporates, MSMEs are facing problems of unpaid bills, bad debts, and non-performing assets (NPAs).”
He added that the new government should implement the recommendations of the Expert Committee on MSMEs set up by the Reserve Bank of India (RBI), which are likely to be presented by June end.
The RBI had constituted an ‘Expert Committee on Micro, Small and Medium Enterprises (MSMEs)’ in January under the chairmanship of UK Sinha to propose long-term solutions for the economic and financial sustainability of SMEs.
The panel is doing a comprehensive review to understand the causes of distress and propose long-term solutions to MSMEs. It also wants to know about the infrastructure gaps and problems affecting the development and growth of MSME clusters.
Saxena said, “Functioning of MSMEs is really hamstrung because of excessive litigations and breakdown of arbitration mechanism. Most of these litigations are with government departments or agencies. Inducing reforms in arbitration and enabling quick redressal of disputes would have a similar effect as that of tax breaks for development of MSMEs.”
The NDA's biggest gains in 2019 general elections came in states like Karnataka, Bihar, West Bengal, much of the Northeast, Odisha, and Maharashtra.
After the election results were out, Prime Minister Narendra Modi took to social media to promise growth and prosperity in a strong and inclusive India.