Investors from North Andhra, while hailing the ₹20 lakh-crore stimulus package announced by Prime Minister Narendra Modi, have welcomed the ₹50,000-crore equity infusion for the MSMEs through ‘fund of funds’.
The package has been exclusively focused on reviving the MSME sector, a major employment provider and contributor to the nation’s GDP, they have said.
CII national council member Gunturu Sivakumar told The Hindu that the package, which was 10% of the GDP, was a very good initiative that laid emphasis on local manufacturing and brands, extending government contracts for six months and clearing all the government outstanding amount to the MSMEs within three months. He said all the MSMEs such as normal NPA/stressed MSMEs and viable MSME-related issues had been addressed.
“A.P. has a vast majority of private sector falling into the MSME sector, and it should benefit from this initiative,” he said.
“Since the definition of MSME has been revised, more companies in A.P. will fall in this category and benefit from the package, provided the implementation of this revised definition is done quickly,” he said.
‘Industries will rebound’
CII State vice-chairman D.T. Raju said the package unveiled at a time when the economy was hit hard due to the COVID-19 pandemic, would help the industries bounce back after sometime. He said it would help India become a strong economic power with world-class infrastructure, promote 21st century technology-driven development and become a self-reliant country.
He hoped that the package would help all the segments of people, including workers, farmers, taxpayers, MSMEs and cottage industries.
Visakha Autonagar Small-Scale Industrialists’ Welfare Association president A.K. Balaji said the package would take care of the requirements of all category of entrepreneurs – those who are in stress, doing healthy business and aspiring businessmen.
He also described as significant the decision to release all pending bills with specific timelines, stating that the Finance Minister had given a breather to the trade and industry.
“We hail the package that helps the domestic manufacturing companies spur growth and build a self-reliant India and gives a big push to the local brands,” said G. Sambasiva Rao, immediate past president of the A.P. Chambers of Commerce and Industry Federation.
Mr. Rao said the ₹3 lakh-crore collateral free loan for the MSMEs would be a steady source of finance to meet the working capital needs of the business, buying the required equipment for production or infusing additional capital during the stressed times.
