Limping back to operational mode after zero business in the last fifty days of lockdown, small medium and micro industries look for higher liquidity, direct benefit transfers to workers and GST reduction among others to accelerate economy.
While welcoming the announcements made by the Prime Minister NarendaraModi, the Finance Minister NirmalaSitaraman and the Reserve Bank of India, has expressed the Joint Council of MSME Associations (JCMA) has expressed the need for more substantial support to the industry which according to the organisation forsee zero saleable revenue for the next one month, about 30% till the end of the second quarter, about 70% till the end of 3rd quarter when we should hopefully be doing close to breakeven and see some relief during the last quarter.
Stating that this scenario has followed an already slowing economy wherein many companies have invested heavily and leveraged completely, the JCMA beyond credit supply there is a need to put in demand creating measures as industries would generate orders over a six months period.
The only way to increase the demand is by enabling people to have higher liquidity and by downward revision of the existing GST structure for various goods. Therefore, a suitable policy towards this has to be taken by the Government of India at the earliest. We believe that a move in this direction will act as a catalyst in the revival of MSMEs”, JCMA has pointed out.