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23/12/2016 11:51am

FISME holds roundtable discussion on impact of demonetization on MSMEs and way forward

image FISME holds roundtable discussion on impact of demonetization on MSMEs and way forward

New Delhi, Dec 23 (KNN) The apex body for MSME Associations in the country, FISME, today organized a roundtable on Demonetization & Push for Cashless Economy: Impact & Way Forward for MSMEs.

Eminent speakers like TK Arun, Editor, Economics Times; Prof Abhijeet Das, Head, Centre for WTO Studies at IIFT; and Prof Kavita Rao, NIPFP gave their expert views on the subject.

Representatives from MSME Associations from across the country participated at the roundtable.

Addressing the event, MSMEs welcomed the move but said they need more handholding support from the government in terms of policies and incentives to shift towards a less cash economy.

Welcoming the Guests, Dr Sangam Kurade, President, FISME, said the MSMEs are on one hand happy with the decision of demonetization while on the other hand the ease of doing business was not at all there in the last few weeks.

Dr Kurade hailed the government to take immediate measures, in line with the suggestion made by FISME, over jump in turnovers of units by shifting to digital means.

Mr Arun opined that things might not get ok in six months and by then many micro, small and medium enterprises (MSMEs) would have collapsed.

But throwing light on the positive aspect, he said many small payment banks have started functioning in the wake of demonetization, which is a step forward towards financial inclusion.

Prof Das co-related demonetization to Gita stating both says that "have faith in me, things will be fine in some time".

He, however, raised few questions from the perspective of a common man and asked "While the decision has been well accepted by the people but still there are few questions coming such as was RBI asked before making the decision that can the economy be remonetized in the said time."

And if RBI said that it cannot, then there is a need for people to ask question and relook at the decision, he added.

Prof Das said looking at the present issues such as infrastructure, connectivity, technological know how, had the things would been managed in a better way, it would have been easier for all.

Speaking at the event, Prof Kavita Rao explained that if there was currency in the market, then it surely had some role which has to be looked at.

People who were doing business in cash have either shifted to cashless system, which is good, and some who have not shifted are faving contraction.

Since one unit is related to another in an economy, so the contraction is also spread this way, she said 

There is a need to identify the sectors impacted and acess the situation, she added.

The MSMEs present in the meeting sought handholding support from the government and suggested that incentives should be given to the sector to switch to digital means. (KNN Bureau)


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