New Delhi, Dec 22 (KNN) President of Federation of Indian Micro and Small & Medium Enterprises (FISME), Gandhikumar has been invited for presenting the views of the MSME sector at the pre-budget consultations.

The Union Finance Minister has begun the process of pre-budget consultations and meeting with the industry in the series is scheduled on Jan 6, 2015. 

President of Federation of Indian Micro and Small & Medium Enterprises (FISME) Gandhikumar has been invited for present the views of the MSME sector.

“Indian industry especially MSMEs are suffering due to slow economic growth and delays in payments. FISME therefore is to suggest measures to alleviate address some of these pains”, said Gandhikumar.

As an umbrella organization of SME associations, FISME has been collating feedback from its constituents about their views on direct and indirect taxes and access to finance. 

Among other things, to boost manufacturing MSME associations are pressing for exemption from income tax, extending outlay and coverage of credit guarantee for securing collateral free loans and lessening the burden of social security for employing people. 

Highlighting problems of fast growing enterprises, a few associations demanded that for requirements of more funds for such enterprises additional collaterals securities should not be demanded. 

On the other hand, others have attracted attention on the need to open up the market of non-fund based finances for bank guarantees etc. by allowing more players such as insurance companies. 

“As working capital limits include both fund and non-fund based requirements, a greater part of these limits get locked in bid bods, bank guarantees and performance guarantees leaving little funds available for actual working capital required for running businesses”, said Gandhikumar.

FISME is demanding that Insurance companies could be allowed to provide such non-fund based guarantees as is done in other countries. (KNN/AB)