COVID-19 impact: AIMO applauds Finance Minister of India's message of special packages to MSME sector

All India Manufacturers Organisation, ( AIMO ), India’s Apex Trade body focused on the MSME sector on 14th May’20 applauded the announcements made by the Finance Minister of India and welcomed the new packages that were offered to the MSME sector. AIMO also emphasized that apart from Money, MSME’s also need Men and Material to re-open, to survive and to grow.

According to Mr.K.E.Raghunathan, Former-President of AIMO: “This Government has proven that they are a Government that listens to the needs of the MSMEs. We have been at the heart of understanding and representing the requirements of the MSME’s in the lockdown period. We at AIMO agree and support with the Honourable PM’s vision of a Self-Reliant Domestic Indian Economy. For the first time in Indian History, the Government has pushed the needs of the MSME’s to the forefront and has addressed it in their financial packages. We at AIMO are proud that MSME’s are being recognized for the contribution to the Indian economy and employment generation”

Raghunathan added: “On interactions with our members, post the announcement of the Finance Minister, we feel that the key concerns faced by MSME’s are the availability of Finance, availability of labour, payment of wages and more importantly availability of raw material. We at AIMO believe that the mantra to solve the MSME’s concern would, therefore, have to be Money, Men and Material.” 

Kenny Ramanand, Hon. National General Secretary of AIMO highlighted: “While INR 300,000 crore and other schemes have been announced, by the statement of the Finance Minister, it will impact 4.5 million MSMEs. We at AIMO would like to highlight that there are over 6 crores MSME’s without accounting for self-employed and the traders. 4.5 million MSME’s would mean that ONLY about 8% of MSME’s will benefit and we hope the FM has further measures in store for the remaining 92% of the MSME’s.”

Mr Raghunathan also said: “We also welcome the No Global Tender up to INR 200 crore procurement by Govt. amendment for Indian MSME’s. We feel that this will encourage new technology initiatives and manufacturing partnerships with International companies to produce locally in the medium to long term. To address the issue of availability of raw material for MSME and to ensure a fair price to them to remain competitive, AIMO suggests that the Government of India startup a System like PDS through NSIC for industrial products for supply of essential materials like aluminium among others to MSMEs at every Industrial estate, using the existing infrastructure created at NSIC. These Industrial PDS will aim to offer materials at Concessional or Subsidized prices, at lower order quantities and reasonable credit periods to survive.” 

On the solution for Migrant labour, Mr Raghunathan stated “AIMO has consistently been the Industry spokesperson for the MSME sector and posts the Lockdown over 72% of MSME’s fear that the reverse migration of Labour has already had a huge impact on their business. In our interactions with the labour directly, we noticed that their biggest concern was fear and lack of respect as a class of people. To incentivize the labour to return to work, the government should create Migrant Labour Welfare Board and construct multiples of 2000 bedded Hostels in every District which are of the highest quality of hygiene cleanliness in a sanitised environment and provide these to the migrant labour at very reasonable prices. “