Credit and Finance for MSMEs: Congress party in a short video tweeted by Rahul Gadhi said business owners need to protect their employees and their families but this is not possible without government help.
Credit and Finance for MSMEs: To help India’s vast MSME sector, which has been significantly impacted due to the Covid-19 pandemic, Congress party leader Rahul Gandhi on Wednesday invited suggestions from public for a proposed MSME relief package. Gandhi tweeted that “#COVID19 has devastated our micro, small & medium businesses (MSME). The Congress party needs your help. Send us suggestions & ideas for what a MSME economic stimulus package should cover on voiceofmsme.in or our social media platforms.” Suggestions and opinions are invited around problems faced by MSMEs and suggestions to solve them on the website.
Congress party in a short video tweeted by Rahul Gadhi said business owners need to protect their employees and their families but this is not possible without government help. “Covid19’s victims are also micro, small, medium enterprises who need an economic package to survive. An already fragile economy will collapse without MSME,” Gandhi tweeted with the hashtag ‘HelpSaveSmallBusiness’. MSMEs are currently going through extreme liquidity crunch and loss of manpower amid Covid-19 crisis.
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Many industry bodies and associations had shared their suggestions to the government to provide relief to MSMEs. For instance, internet and mobile industry body Internet and Mobile Association of India (IAMAI) suggested postponing statutory payments such as Tax Deducted at Source (TDS), Employees’ Provident Fund (EPF), and Employee State Insurance (ESI), amid Covid-19 outbreak, for six months for SMEs in the services sector. This will help small businesses “continue to retain employees while giving maximum cash salaries to them,” said IAMAI. MSMEs in trade and other services employed around 7.5 crore people as per FY19 annual survey by the MSME Ministry.
Last month Finance Minister Nirmala Sitharaman had cut the interest rate to 9 per cent from 18 per cent earlier on delayed deposit of TDS while tax returns deadline was extended to 30 June 2020. The minister had also announced last month for the government to bear the 24 per cent contribution of both employee and employer combined to the EPF for the coming three months for MSMEs to cope up with the cash crunch under lockdown period.