The Confederation of Indian Industry (CII) has urged the newly elected UPA government to relieve the MSMEs from some of the rigid administrative regulations that are impeding the sectoral growth.
According to Venu Srinivasan, President, CII, “As a long-term step, we need to setup a framework to support the MSME sector. The small and micro units have been badly hit by the global meltdown, and thus the government should provide them with some credit cover from banks to assist them in overcoming their liquidity constraints.”
A report has been sent to the government, which emphasises on monetisation of financial deficit and reduction of interest rates. To mitigate the effects of recession, CII has also recommended making investments in technology and setting up single window for debt clearances at the state level.
The CII has also asked the government to reduce the repo rate and the reverse repo rate by a minimum of 50 basis points to 4.25% and 2.75% respectively to inject more funds into the system in a bid to revive the economy.
Chandrajit Banerjee, Director General of CII, said, “We would also appeal to the new government to introduce a relief package for the MSME sector and bring down the cost of credit for this segment.”
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Saurabh Garg
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