FISME demands separate pre-budget session for MSMEs

Top Stories

»	India’s textiles sector records surge in investment, rise in exports in 2025
»	ISRO successfully launches BlueBird Block-2 satellite into orbit
»	Sensex, Nifty record mild gains amid positive global cues
»	Piyush Goyal lauds public sector banks, calls them key to MSME growth
»	Indian rupee rises for 2nd session amid RBI interventions

SME Times News Bureau | 14 Jan, 2012
The Federation of Indian Micro and Small & Medium Enterprises (FISME) Friday demanded a separate pre-budget session for micro, small and medium enterprises (MSMEs) with the Finance Minister.

President of FISME, V.K. Agarwal said, "The MSME sector has its own set of issues distinct from the large companies. Their needs and aspirations require customized policy responses.” He, therefore, demanded a separate pre-budget session for MSMEs with the Finance Minister.

According to him, in spite of contributing about 8 percent to the India's Gross Domestic Product (GDP), 45 percent to total manufacturing output and 40 percent to exports, the MSME sector is no longer in the list of groups invited by the Ministry of Finance for pre-budget consultations.

The Finance Ministry used to hold a separate session with the SSI sector earlier which was discontinued in 2004. Only one or two representatives are now invited interspersed with corporate sector groups.

MSME associations emphasize the need for government-business consultations covering a wider group. Experts are also of the view that absence of engagement or constricted consultations with wider stakeholder groups is the chief hurdle to consensus building. Recent confusion in introduction of FDI in multi-brand retail could have been avoided if a conscious consensus building approach was adopted

“In the absence of access to institutional platforms of dialogue in many Ministries, MSME associations are left with no option but to resort to rhetoric and to take-up rigid positions creating a lose-lose outcome,” Agarwal said.