Sir,
The Union Government of India has just extended the validity of a key scheme bolstering equity support to Micro, Small and Medium Enterprises (MSMEs) for one year by facilitating Rs20,000 crore as subordinated debt which will now remain in force until March 31, 2023. The Government that has been helping the sector at too slow a pace to help them survive, has even made statements as if they are doing a great thing, while the fact is that the Government of India does not even maintain the latest data about the MSMEs or job losses in them and therefore all their planning were planned and being implemented in the dark and does not meet the requirement on the ground.
The record shows how little Modi Government is supporting MSME sector in the country to survive which employs over 90 per cent of the workforce in non-agriculture activities. It is therefore no wonder as to why MSMEs in the country are struggling to survive. Even gross non-performing assets of MSMEs or loans defaulted, rose by Rs 20,000 crore to Rs 1,65,732 crore as of September 2021, from Rs1,45,637 in September 2020. According to the RBI, bad loans of MSMEs now account for 9.6 per cent of gross advances of Rs 17.33 lakh crore as against 8.2 per cent in September 2020, and Rs 1,47,260 crore (8.8 per cent of advances) in September 2019. No doubt, MSMEs in India need accelerated real support on the ground, not only high sounding names and numerous schemes in speeches and papers. It is key to the employment generation in large number to overcome joblessness in the country.
Dr. Gyan Pathak
Trending Now
E-Paper
Follow our WhatsApp channel