Basis the economic stimulus package announced by the Finance Minister Nirmala Sitharaman today to boost the MSME sector in the country and help build the Indian economy to pick up pace once. We would like to share quotes with you on behalf of India Inc. industry leaders on the reaction to this package by the government to lift the economy during this time of crisis.
“Finance Minister’s announcement is in line with the government’s aim to provide the necessary impetus to economic growth and build a ‘self-reliant’ India. We welcome the announcement of all pending payments within 45 days from PSEs to MSME sector. The telecom industry has unutilized GST input tax credit over INR 35,000 crore for which the sector has repeatedly demanded refund.
Moreover, the total outstanding from PSUs is amounting to approx. INR 20,000 crore since long. We hope the Hon’ble Finance Minister, Smt. Nirmala Sitharaman, in the course of next few announcements would give similar relief to the sector that has immensely contributed to keeping the country connected during last 25 years and has kept 1 Bn people connected during the current lockdown situation.”
To be attributed to Rajan S Mathews, DG, COAI.
Quote on the Finance Minister’s announcement supporting the MSME’s by Mr. Ashok Rajpal, MD, Ambrane India
We as an MSME appreciate and welcome the relief package announced by our finance minister. We look forward to the relaxations that were suggested today, and are quite hopeful that the relief will definitely help in abating the economic severity of the corona pandemic, and will act as a stimulus to revive the economy.
Have attached Mr. Ashok’s profile and company profile for your reference. Please let us know if you shall be needing anything else.
Anuj Garg, co-founder and CEO, Inscripts
Mumbai based product development company that built video conferencing product ‘Say Namaste’
Prime Minister’s call for Aatma Nirbhar Bharat and our Finance Minister’s announcement on the Rs 20 lakh crore package has come at a time helping MSMEs survive the Covid-19 wave. With major tax reliefs, a revised MSME definition, similar benefit brackets for manufacturing and service MSMEs, the govt. has created a pathway to ease doing business. Also, Global tenders up to Rs 200 crores being disallowed in Government procurement tenders will give Indian companies and products such as SayNamaste a big boost to participate and maybe even win lucrative government contracts. We hope the procedure to avail these services and benefits are less complicated.
Ankur Mittal, Co-Founder, Inflection Point Ventures The government has come up with some good policies to support MSMEs in these dire economic times, and it’s heartening to see openness to leveraging fin-tech to enhance transaction-based lending using data. It will be important that the policies & processes to avail the schemes are also well-defined and hassle-free for the enterprises so that these initiatives translate into activity on the ground as soon as possible.
Pankit Desai, co-founder & CEO, Sequretek
Mumbai based Cybersecurity Company
The fiscal package announced today by the FM is a comprehensive one as it addresses the root of the problem being faced by small and medium companies which is cash flow and working capital issues. The collateral-free loan which is essentially an emergency line of credit will help SMEs infuse fresh capital into the system and resume their operations as we slowly come out of the Covid 19 led lockdown. A long-standing request of the industry to remove distinction between manufacturing and service business have also been addressed which will further make ease of doing business better. The major announcement for startups like ours is the fund of funds which is Rs 10,000 crore will help new-age companies acquire a much-needed runway.
Kishan Jain, Director at Goldmedal Electricals said, “We welcome the move by the Government of India on providing much needed relief to industry through the INR 20 lakh crore economic package announced. Finance Minister’s plan of providing INR 3 lakh crore collateral-free automatic loans for MSMEs will provide much needed line of credit to the sector that is currently under strain due to the COVID-19 lockdown. Additionally, the INR 20K crore subordinate debt for stressed MSMEs will provide a much needed shot in the arm and will help these companies get back on their feet. By changing the way MSMEs and SMEs are defined through the increase in the investment and turnover limits, it will enable them to gain the benefits that the Government provides. All of these measures will definitely ease the financial burden of this sector and boost growth and expansion. It will also invigorate MSMEs by investing in building innovative products and services that will give further boost to Aatma Nirbhar Bharat Yojana announced by PM Modi yesterday and give a much needed fillip to India’s economy post the lockdown.”
Dr. Vishwakumara Kayargadde, Founder and COO, Saankhya Labs said, “The measures announced by the Government of India come as a much needed relief to the MSME sector that has been going through a difficult time since the onslaught of the COVID-19 outbreak. Today’s announcement by the Finance Minister of providing Rs. 3 lakh crore collateral-free automatic loans for MSMEs, will help companies tide over the uncertainty that has arisen due to the extended lockdown. Also, stressed MSMEs can take advantage of the Rs. 20K crore subordinate debt announced today as this will help sustain their business and boost growth. While the government has given a thrust to manufacturing through its flagship ‘Make in India’ programme, the new steps announced will promote local companies to manufacture their products within the country. This will also help ramp up investments in the MSME sector and incentivize companies to build a local ecosystem. That said, the measures announced today will go a long way in providing a much-needed fillip to the economy and allow Indian companies such as Saankhya Labs to develop innovative and technology-driven solutions locally which can be exported globally.”
Kunal Lakhara – VP of Finance and Operations – Pocket Aces said, “During the current COVID-19 lockdown, we applaud the timely and strategic announcements made by the Government of India in the form of the INR 20 lakh crore economic package. With MSMEs being at the center of the storm, the INR 3 lakh crore collateral-free automatic loans announced by the Finance Minister will provide a timely line of credit to these companies, helping them tide over the crisis sooner. Additionally, by redefining what constitutes an MSME through the increase in their investment and turnover limits, we will see a lot more organizations benefiting from the Government’s schemes. What is even more inspiring is the INR 20K crore subordinated debt for stressed MSMEs, which will provide these companies with adequate time to stabilize themselves in the t of a challenging economic situation. We believe that all of these measures together will not only ease the financial burden of these enterprises but also pave a way for business growth, expansion, and innovation. This, in turn, will help India get back onto its feet and continue its high growth trajectory in the years to come.”
Lokendra Ranawat, Co-Founder & CEO, WoodenStreet –
The Prime Minister’s appeal to ‘go vocal for local’ is crucial to support and promote local manufacturers, giving a platform for local goods to be endorsed and used by Indians with pride. Local is the path to make India self-reliant and boost the Make-in-India initiative, and this path requires the support of every Indian.
Along with this, the 20 Lakh Crore economic package is a promising step to bring about a revival of this bleeding economy, a relief to help the nation stand back on its own feet.
Mr. Teja Gudluru, Founder and CEO of UDO-now.com
“Pm Modi beautifully articulated the need for self-sustenance. This is a great move and a great opportunity for Indians to move to use India made products and apps too!. This will be a brilliant opportunity for Made In India startups that otherwise were struggling to compete with Chinese backed giants like zoom and Alibaba. It’s about time, Indians start using regional products and goods. This is also a challenge PM Modi posed for the Indian Inc to meet this demand
About time Indians stop purchasing foreign good and foreign apps and look for Indian alternatives” by Mr. Teja Gudluru, Founder & CEO, UDO-now.com.
Ms. Kiran Dham, CEO, Globus Infocom Ltd.
“Today’s speech and the message was given by our Honorable Prime Minister is extremely encouraging and inspiring with an announcement of 20 lakh crore financial stimulus package benefitting all sections of society. It certainly was a message which came at the right time. An insightful and motivating message which has channelized us to think beyond Corona and its deadly impact. We all need to work towards encouraging Local manufacturing, and be VOCAL about Make in India with a great sense of pride. Together we can and together we will make India self-reliant!! We feel extremely proud of being a Make in India brand”.