FISME demands separate pre-budget session for MSMEs

Top Stories

»	RBI MPC meet begins, status quo on policy rate likely amid West Asia tensions
»	Govt launches programme to train scientists in Governance under Mission Karmayogi
»	India's fisheries sector draws Rs 39,272 crore investment since 2015, seafood exports double
»	India’s exports to Australia more than double after bilateral trade pact
»	India IPO market hits highest Q1 since 2018, raises $2.5 billion

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.