Budget 2019: ‘Only Easy & Affordable Loans Can Revive MSME Sector’

When Nirmala Sitharaman tables her maiden Budget, one of the key sectors in focus will be the MSME sector.

When Nirmala Sitharaman tables her maiden Budget, one of the key sectors in focus will be Micro, Small and Medium Enterprise (MSME) sector.

(Photo: The Quint)

Video Editors: Ashutosh Bhardwaj and Sandeep Suman

The growth rate of the country is at a five-year low and the the unemployment rate is at a 45-year high. In such a scenario, when Nirmala Sitharaman tables her maiden Budget, one of the key sectors in focus will be the Micro, Small and Medium Enterprise (MSME) sector.

MSME sector contributes 7-10 percent to the Indian economy while manufacturing sector contributes 45 percent and exports contribute 40 percent to the economy. But, if the government wants to see a boost in manufacturing sector and job creation, then they will have to give special focus to MSME sector.

General Secretary of Federation of Indian Micro and Small & Medium Enterprises (FISME) Anil Bharadwaj is hopeful that in this budget the government will increase public spending which will lead to growth in demand. The increase in demand will lead to increase in manufacturing jobs under MSMEs.

E-Retailers Are a Big Challenge

Small scale businessmen and shopkeepers have their own issues. Many of them are facing a stiff competition from e-retail websites. Apart from that, they have an added baggage of GST returns.

“Something which may cost in the range of Rs 8,000-12,000 will be available on a website at only Rs 4,000. Government must ensure that such disparity in price doesn’t exist.”

Dharm Singh Chouhan, Shopkeeper in Noida

Similarly, shopkeepers that sell watches also want that prices of e-retailers are regulated by the government. Meanwhile, a shoe shopkeeper demanded that transportation of goods should be made easier.

“Transportation is very difficult. Several duties are levied on goods. If the government takes some step, then it will be beneficial for small businesses.”

A Shoe Shopkeeper in Noida

Boost in Exports Will Increase Jobs

Pankaj Bansal, who runs an exporting business called TMA International, says that banks often ask for too many documents while approving loans for exporters. The interest rates are also high and there is a delay in receiving refunds from GST too.

“If an exporter is buying goods and paying a GST of 18 percent, it is taking him 45-60 days to get a refund whereas the government had promised refunds within 7-10 days. So the money gets stuck for around 2 months, and because of that the exporter has to bear extra costs.”

Pankaj Bansal, Owner, TMA International