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MUDRA - MUDRA should be reinvented so that SIDBI Wage support could be made available to workers employed
becomes more effective in its operations as it gets into in such units, a Wage Subsidy to MSMEs, especially in the
underwriting, risk management and fund-raising on its own. Manufacturing sector, to the extent of 50 per cent for all
registered workers for a period of 6 months.
CGTMSE - To make lending effective, credit guarantee of loans
to MSMEs is important. The UK Sinha panel stated that all these All government concession should be provided only for those
schemes should be regulated and brought under the RBI. organisation or establishment which has 50 percent
procurement from MSMEs and all Governments including
Relaxation in Regulatory Norms - The issue of a potential Government Undertakings should procure their entire
default is relevant for MSMEs as the class of entrepreneurs requirement from MSMEs only at market price on
is different from those in the corporate sector and the size transparent basis.
of the loan is much smaller. Hence, using the normal 180-
day rule under Insolvency and bankruptcy code should be Concessional Insurance premium must be charged for all non-
relaxed in case of MSME. life Insurance policies including workmen policies taken by
all MSMEs for period of two years.
Infrastructure Development - For demand generation,
augmentation of industrial infrastructure and promotion of Concessional power supply facilities should be given to all
MSMEs. Industrial corridors should address the lack of these MSMEs including waiver Electricity Duty for one year.
infrastructure and logistics.
With the above mentioned support/relief from the GOI as
Public Procurement Policy - The government can play a well as prompt and suitable handholding from Banks & FIs,
crucial role in creating domestic manufacturing capabilities the MSME Sector can regain its lost ground and bounce back
by leveraging proposed public procurement and projects. to accelerate their growth and also help in the growth of
Mega public projects such as Sagarmala, Bharatmala, Indian economy.
industrial corridors, and the Pradhan Mantri Awas Yojana
(PMAY) can stimulate domestic manufacturing activities Bibliography
provided the projects are suitably structured and demand O Reports on Credit disruption by Omidyar Network & BCG
is aggregated strategically.
O MSME schemes launched by the Government
O Annual Report 2017-18 of NIMSME
Conclusion:
O Financing India's MSME : IFC.org
The global economy has entered a recession as a consequence
O MSME pulse December 2020
of the coronavirus pandemic. There are lockdowns across the
world, hitting economies hard. The International Monetary O Indian Government's major MSME Policy initiatives
Fund (IMF) has said this recession will be worse than the one O Key to MSME Growth: FICCI CMSME
in 2009, caused by the global financial crisis. With its low O Micro, Small & Medium Enterprises: Vibrant Gujarat
dependence on exports and the advantage of moving early 2017
on social distancing, the Indian economy may do better than
O MSME policies: Dr. Nalla Bala Kalyan
some other developing countries but same is not possible
unless otherwise MSMEs are given priorities and they exist O MSME Report Jan'20: TransUnion CIBIL
to take the advantage of global recession.
Websites:
Moratorium on EMI payment for 3 months is not sufficient, https://www.TransUnionCibil.com/resources
instead Government must waive the interest at least for 6 www.sidbi.in/en/msme-pulse
months as being done in other affected countries. www.msme.gov.in
https://www.rbi.org.in
Government must clear all pending dues including GST refunds
to MSMEs at the earliest and all complaints for recovery https://m.economictimes,com
should be resolved within 30 days from date of said complaint. https://www.financialexpress.com/industry/msme-fin-india
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