Former Union Minister Suresh Prabhu seeks policy interventions for MSMEs

New Delhi, May 19 (KNN) Former Union Minister Suresh Prabhu demanded policy interventions for the Micro, Small and Medium Enterprises (MSMEs) to help them tide over the COVID-induced challenges.

In a letter addressed to Union Finance Minister Nirmala Sitharaman on Tuesday, Prabhu stated that he had been approached by several organizations representing MSMEs.

Prabhu further said that the lockdown in multiple states have put the small businesses under tremendous stress and requested the Finance Minister to look into their genuine grievances.

''Survival of this MSME sector, a backbone of our economy, is critical for early revival of the economy as a whole and also for protecting the jobs and livelihood of millions. Some important policy interventions such as the rescheduling of loan portfolio, waiver or deferment of interest, opening a new window for infusion of both equity and loan capital, ensuring liquidity and solvency are urgently needed", he said.

Recently, a survey Care Ratings revealed that due to the second wave of COVID-19, economic recovery is beginning to lose steam and the country’s GDP growth is likely to be below nine per cent for the current fiscal.

The survey also said that the MSMEs sector i.e 72 per cent felt that the restrictions would cause labour supply shortages.