Can MSMEs Become Priority Segment In The Election Year?

By Faiz Askari, Founder Editor, SMEStreet

Being in the election year, we are bound to face great action with respect to news developments, quotes, announcements etc. However, there are few challenges that the policy leadership is going to face. Among these challenges how the last four years have gone for the MSMEs and what contribution have they made towards nation building are some of the priority questions. However, highlighting the country’s developed infrastructure is going to be a major influencer for the leadership of the ruling government.

The obvious reason to justify this statement is based on the fact that 2019 is the election year and it is the factor of infrastructure development which made the Narendra Modi led the government to emerge in the majority after the previous general elections in 2014.

However, infrastructure is among top parameters which are getting screened. Other important parameters remained, economic development of MSMEs. From SMEStreet’s perspective, there are important elements such as industrial development, credit availability, credit affordability, and MSMEs’ overall growth and positive ecosystem for MSMEs and startups remain in the priority list of Indian citizens.

Now, all these questions, are ultimately pointing out towards some of the flagship policies such as ‘Make in India’, Startup India, Digital India, Mudra Scheme and Govt’s focus towards Ease of doing business and so on.

The on-ground reality check for these questions gives us very different picture and by looking at the declining figures for exports, manufacturing output and turbulence in the job market can give some strong indication. However, GST implementation is often considered as an achievement that the finance ministry of Narendra Modi government has achieved but this development has also received a massive protest from small entrepreneurs from various parts of the country. However, there are series of tweaking in the GST which have won hearts of the MSMEs.

Exports from MSMEs are still on a rough patch and a strong policy push is needed to make it do better.

Garment exporters are continuously complaining about the policy shifts that have been taken by the government and as a result, small countries have managed to take a lot of work from Indian garment manufacturers. This scenario needs immediate attention of the policymakers.

Now, it is the season of interim budget. This years’ budget is expected to bring a smile of the face of the common man. Considering the fact that they are going to vote for the new government in a few months from now. The pressure is on Union Finance Minister Mr. Arun Jaitley and his team to present his fifth budget and ensure some relief from complex tax structure.