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Request to reduce the default limit of MSMEs by one crore to 5-10 lakh in the budget Request to reduce the default limit of MSMEs by one crore to 5-10 lakh in the budget

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New Delhi 6 days ago

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The budget for 2021-2022 has met the highest expectations. The MSME sector also has high expectations from the government in the 2021 budget. MSMEs especially want to get rid of late payments. He also hopes that in the budget the government should announce an increase in government procurement for small businesses. In a conversation with Dainik Bhaskar, Mukesh Mohan Gupta, President of the Indian Chamber of Micro, Small and Medium Enterprises, said the late payment monitoring system should be improved. MSMEs face huge financial problems due to late payments.

The default limit increased by NCLT should be reduced by one crore to 5-10 lakh. Online loan approval is for the same businesses that have been in business for two or three years. But there is no such platform for startups. There should be such a platform for them. On the other hand, according to Anil Bhardwaj, general secretary of the Federation of Indian MSMEs, 25 percent of small business procurement is a rule of the central government. It should also be done for the state government. The kind of federal cooperative systems the Prime Minister talks about should encourage MSMEs to increase their share of government procurement. The last 6-8 months have been painful for all industries. Many accounts have become NPAs or are in the process of becoming NPAs. The government should formulate a clear and comprehensive policy on NAPs.

States are encouraged to increase their share of MSMEs
States will be encouraged to increase their share of the MSME sector, which will lead to the launch of new MSME units in most States, thereby boosting production. The budget also calls on other MSME entrepreneurs to formulate a clear and comprehensive policy on NPAs and to liberalize banks’ lending rules.

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