MSME pins its hope on new govt to do the rescue act

Chennai:

Micro small and medium enterprises in Tamil Nadu are bleeding due to the economic downturn and the industry has pinned its hopes on the new government to do the rescue act.

Addressing a seminar on MSME prosperity, president of Tamil Nadu Small and Tiny industries Association K Gopalakrishnan said that there are about 1.5 crore to two crore MSMEs in the country.

“And if one goes by an average workforce of three to four people, it would have nearly eight crore workforce and added to it the family members, it would amount to a total population of 24 crore,” he said.

But yet the 24 crore population is ignored by the parties as well as government. “no one is keen to take up our issues ,” said Gopalakrishnan.

He also said that it is time the government gives workers freedom to opt for other health insujrances instead of registering with Employee State Insurance. The ESI and service tax is like inspector raj for MSMEs and many don’t increase the strength beyond six to escape the difficulties posed due to ESI and Provident fund.

He also highlighted the difficulties in taking loans from banks and said only 15pc MSMEs are supported by financial institutions and the rest are dependent on private money lenders.

Delivering inaugural address, additional industrial advisor of MSME Development Institute said that it is time the small industries association sets up a vision and a strategy for wealth creation instead of being dependent on government.

He also highlighted the need for MSME to forge tie up with institutions to get access to technology. “This is much more cheaper than buying technology from the international market,” he said.

He also stated that when a tiny country like Bangladesh has set up a target to overtake India’s trade by 2020, why is the MSME sector not focusing on setting up its own target.