Wednesday, May 22, 2024
HomeUncategorizedEconomic stimulus package : Deepak Kulkarni, Chairman, CII, North Maharashtra Zone

Economic stimulus package : Deepak Kulkarni, Chairman, CII, North Maharashtra Zone

A booster shot for hard-hit MSME sector


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As the industry awaits to restart factories and financial activities, this stimulus is expected to provide the fillip. Crucial to this growth is revival of sectors like farming, MSMEs, capital goods.

Deepak Kulkarni, Chairman, Confederation of Indian Industry (CII), North Maharashtra Zone, while speaking on MSMEs, migrants, street vendors, farmers, agricultural infrastructure and CLSS says the Finance Minister has unveiled an impactful package under the first tranche of the Atmanirbhar Bharat Abhiyan as demanded by the very dire economic circumstances we are in due to Covid-19. The first phase targets the key sectors of MSME, employees provident fund, Discoms, and taxation among other major areas that are the most impacted.

Commenting upon the re-definition of Micro, Small and Medium Enterprises (MSME), the CII chairman lauded this long awaited decision. He said the six measures announced by the Finance Minister for MSME sector are very well targeted and meet the immediate as well as longer term requirements of the sector.

The most important announcement with long term implications is the quantum jump in definition of MSME, which had not been changed since the MSME Development Act of 2006 and was long awaited. Along with the decision to not have global tenders for Government procurement up to Rs 200 crore, the redefinition will assist the MSME sector to grow and emerge as a vibrant and dynamic sector, contributing to self-reliance and employment in a big way.

The FM has also introduced a prudent and calibrated set of measures that promises to stabilise the conditions after the Coronavirus crisis, he said adding that the second tranche of stimulus package rightfully focussed on providing relief to poor including migrant workers, farmers, street vendors and members of tribal community which have borne the brunt of the lockdown necessitated due to COVID-19 outbreak.

“The Rs 2 lakh crore concessional credit boost to farmers through the Kisan Credit Cards will ensure that the ongoing agricultural operations are not interrupted due to lack of funds,” Kulkarni said.

Further welcoming the stimulus package, the CII chairman adds, “for the migrant workers the availability of free food grains, concessional rental housing complexes, among other measures are expected to alleviate their stress by providing them some succour in the current challenging scenario.

Stating that the package will give a major boost to housing and agricultural sectors, CII chairman Deepak Kulkarni says, the measure to extend Credit Linked Subsidy Scheme (CLSS) for middle income group is expected to give a boost to the all-important housing sector which has significant multiplier impact on rest of the economy”.

“The Finance Minister’s focus was rightly laid on the agricultural sector. A combination of big-ticket reforms together with allocation of money for agricultural infrastructure and logistics is a welcome move to strengthen the sector that provides the highest share of employment in our country,” he added.

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