PHDCCI advises govt to tap MSME potential for import substitution

New Delhi, Jan 6 (KNN) PHD Chamber of Commerce and Industry (PHDCCI) has asked the government to develop a framework to support MSMEs who offer products and services which can contribute to import substitution.

Submitting its recommendation for the upcoming budget 2023-24, it said this help is needed as more investment would be required in such areas, reported ET.

Appreciating the government for announcing various economic and regulatory relief measures under Atmanirbhar Bharat, the industry body however said that due to continuous disruptions there has been an increase in cost of inputs and its impact on Indian MSMEs is clearly visible.

“In this scenario, fair, stable and predictable tax policies can be effectively leveraged to spur consumption & growth for the MSME sector,” it said.

Suggesting few important fiscal policy issues that need to be addressed in the forthcoming budget, PHDCCI has called for loans at minimal interest rate of 5-6% with a long term tenure of 9-10 years for repayment period.

It has also recommended easy land acquisition, less compliances could be key factors in developing import substitution in the country.

Further it has suggested the government to come up with a strategy to reduce the logistics cost for MSMEs.

“Logistics costs in developed economies is around 6-7%, whereas the same in India is about 13-14%. If logistics costs can come down, the benefits for manufacturers in general could be immense,” it pointed out.  (KNN Bureau)