Gadkari urges MSMEs to replace foreign imports with domestic production

New Delhi, Apr 18 (KNN) Union Minister of Micro Small and Medium Enterprises (MSMEs) Nitin Gadkari has urged the sector to replace foreign imports with domestic production.

''There is also need to focus on import substitution to replace foreign imports with domestic production,'' he said while was addressing meetings held on Friday via video conferencing with the representatives of Young Presidents Organization (YPO), India SME Forum (ISF) and other enterprises from various sectors from Nagpur. 

He also urged enterprises to make use of technology and mentioned that Research, innovation and quality improvement can play a major role in industrial development.

As the lockdown eases out and focus shifts to increasing economic activity, revival of the sector for large scale employment generation and leading the way for sustained economic growth becomes imminent, he said.

"This is an opportunity for India," Gadkari said, citing the example of Japan where the government asked the industries to withdraw their investments from China and move elsewhere.

Regarding revival of MSME sector, the Minister mentioned that industry should lay special focus towards export enhancement and necessary practices be adopted to reduce Power cost, Logistics cost and Production cost to become competitive in the global market.

Gadkari mentioned that while the Government has allowed certain industry sectors to start functioning, it also need to be ensured by Industries that necessary preventive measured are taken to prevent the spread of COVID-19.

He emphasized on usage of PPE (Masks, sanitizer, gloves etc) and advised to maintain social distancing while resuming the offices/business operations.

While commenting on delayed payments to MSMEs, Gadkari requested that all efforts should be made to make payments immediately and all Government Departments have been given such directions.

Further, he assured all possible help from the government to tide over the challenges created by the lockdown imposed to curb the spread of COVID-19.

During the meeting, the representatives expressed concerns regarding various challenges being faced by MSMEs amid COVID-19 pandemic made suggestions and requested support from the government to keep the MSME sector afloat.

Extension of moratorium for at least six months, enhance working capital loan limit for MSMEs, waiver of charges on utility bills, inclusion of certain goods in the category of essential commodities including computer hardware sector, payment of salaries to workers during lockdown from ESI and Provident Fund reserves, make all expenditure incurred on education and health institutions at zero tax etc were some of the issues pointed out by the representatives.

Gadkari assured that he would take up these issues with the Union Finance Minister and the Reserve Bank of India (RBI)adding that '' the industry should work together and tap the opportunities that will be created when the COVID-19 crisis gets over.''