The Confederation of Indian Industry (CII) has asked the government to announce a package, including creation of different funds, in the forthcoming Budget for MSMEs to boost growth potential of the sector.
The Confederation of Indian Industry (CII) has asked the government to announce a package, including creation of different funds, in the forthcoming Budget for MSMEs to boost growth potential of the sector.
CII has listed a 10-point agenda for the MSME sector in its pre-Budget memorandum that includes streamlining of the policies and procedures for listing on SME Exchanges, implementation of the public procurement policy and promoting FDI by NRIs in the sector.
"CII has called for the extension of the applicability of the provisions of the public procurement policy to the State Government Ministries, departments and public sector units and its strict implementation by the Central Government Ministries, departments and PSUs," it said in a statement.
It has asked for streamlining the process of data collection to mitigate the problem arising out of delayed payments to the MSMEs. "Creation of different kinds of funds is needed to promote different aspects of MSMEs. These include the branding and export marketing fund and environment friendly technology fund could be instituted to enhance the self-reliance on energy," it added. It has also suggested for liberalisation of FDI policy for the sector.
The government should allow FDI participation by NRIs in the SME sector through automatic approval. "The MSME segment, which employs more than 59 million persons and contributes 40 percent to manufacturing output and to the exports, can truly emerge as a growth driver for the economy if the issues are addressed in a proactive manner," it added. Finance Minister P Chidambaram is scheduled to unveil the Union Budget for 2013-14 on February 28.
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