This year’s Union Budget will be judged by what it does to revive and rejuvenate India’s Micro, Small and Medium Enterprises (MSMEs), the Congress said on July 16.
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In a statement, Congress general secretary Jairam Ramesh said that through a “combination of deliberate policy and wilful neglect”, the Narendra Modi-led government has systematically bludgeoned the MSME sector that accounts for 30% of India’s GDP, about 45% of its exports, and employs 12 crore people. Demonetisation, the “botched” implementation of GST, the COVID-19 lockdown, “rampant oligopolisation”, and cheap Chinese imports have all contributed to the near destruction of the sector, he said.
"MSMEs employ 12 crore people - second only to agriculture – and are responsible for most job creation. Yet, the Modi Sarkar has spent 10 years systematically bludgeoning India's MSMEs through a combination of deliberate policy and wilful neglect."
— Congress (@INCIndia) July 16, 2024
Here is the statement issued… pic.twitter.com/dgwxfc2tkn
“Consequently, MSMEs are faced with high tax rates, severe credit crunch, high input prices, and widespread closures. Unsurprisingly, their contribution to GDP today is the lowest it has been in decades,” Mr. Ramesh said.
GST 2.0 needed
The party’s wishlist of measures to revive the sector includes the extension of the non-performing assets (NPA) classification period for loans to MSMEs from 90 days to 180 days. The Congress called for GST 2.0 with a single, moderate rate, and relief for small taxpayers like MSMEs. The party also wants dedicated funds to create MSME export capacity, and enhanced funding for start-ups.
“The self-anointed non-biological Prime Minister and his government must revisit their economic agenda, shed their cronyism, and end their whimsical policymaking. This Budget will be judged by what it does to revive and rejuvenate India’s MSMEs,” Mr. Ramesh said.
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