Industries Divided Over MSME Package: Perspectives from Kulmani Gupta
By India Today | Fri May 15 2020
NEW DELHI: The government's announcement of a ₹3 lakh crore collateral-free loan scheme for MSMEs has elicited varied responses from industry leaders. While some view it as a much-needed lifeline, others express concerns over its adequacy and implementation challenges.
Kulmani Gupta, President of the Indian Industries Association (IIA), acknowledged the government's efforts but highlighted the need for more immediate relief measures. He stated, “While the loan scheme is a step in the right direction, many MSMEs require immediate cash flow support to survive the ongoing crisis. The focus should also be on waiving fixed costs like electricity charges and providing direct financial assistance.”
Gupta further emphasized the importance of ensuring that the benefits reach the grassroots level, urging the government to streamline the application process and reduce bureaucratic hurdles. “The success of this package will depend on its effective implementation and timely disbursement,” he added.