On Tuesday, July 16, Congress accused the Modi government of systematically undermining India’s Micro, Small, and Medium Enterprises (MSMEs) over the past decade. Congress general secretary Jairam Ramesh emphasized that the upcoming budget will be crucial in assessing efforts to revive these vital sectors, which contribute significantly to India’s GDP and employment.
BulletsIn
- Congress alleged the Modi government has spent 10 years undermining MSMEs through deliberate policy and neglect.
- Jairam Ramesh called for a revision of the government’s economic agenda and an end to cronyism.
- MSMEs account for 30% of India’s GDP, 45% of exports, and employ 12 crore people.
- Ramesh highlighted the impact of demonetization, which forced many MSMEs to close due to inability to pay employees or debts.
- The initial struggles with GST implementation put many MSMEs out of business due to high compliance burdens and delayed refunds.
- The COVID-19 lockdowns and lack of economic support further harmed MSMEs.
- Ramesh accused the government of fostering oligopolies through favorable policies, pushing MSMEs out of the market.
- He noted a significant rise in cheap Chinese imports, making domestic MSMEs uncompetitive and leading to closures.
- Congress proposed extending the NPA classification period, establishing GST 2.0, and providing tax relief for MSMEs.
- The party also called for dedicated funds for MSME export capacity, enhanced start-up funding, and more effective use of anti-dumping duties to protect domestic industries.
