Demonetization, GST implementation and recent crisis in NBFC are some of the major issues faced by the MSMEs in last couple of years.
Various measures taken by the central govt. to support MSME included, speedy loan sanctions of up to Rs. 10 million in less than an hour, easing of NPA norms for MSMEs, simplified process to access credit to ease of doing business as well as subsidy on interest on loan payments for all GST registered MSME players. There was also increased guaranteed purchases from MSMEs by the state run bodies by 25%. Further the GST exemption limit was raised from 20 lacs to 40 lacs.
Taking into account their key role in Indian economy, the govt. is expected to continue its efforts in uplifting MSMEs.
- Dedicated window for MSME counselling:
For guidance and counselling to MSMEs there should a separate window in every district / zone / city. Apart from assistance in leveraging benefits from govt. schemes, these windows should also facilitate inter-connectivity between businesses from related industries / sectors / products and services.
- Increased attention and promotion of Rural projects:
Rural development is directly linked with growth and development of MSMEs. By increasing our focus on rural development, we can channelize more resource allocation and business to MSMEs.
- Relief in Capital Gains tax:
To encourage MSMEs to raise their own capital and resources, taxes levied on gains from sale of capital assets should be relaxed.
- Revival of Sick MSMEs:
There should more direct and measurable plans to revive struggling MSMEs. By handholding MSMEs in difficulty and helping them turnaround, the govt. will surely set an example and encourage youth start their own startups.