Year-ender: Industry bodies termed ‘2019’ as worst year for MSMEs; expect revival in 2020

New Delhi, Dec 31 (KNN) Micro Small and Medium Enterprises (MSME) which contribute 29 per cent to the country's Gross Domestic Product (GDP) have suffered a lot amid recent economic slowdown and various transformative steps despite government's effort.

The ministry in its Year End Review 2019 has informed that it has taken numerous steps during the year for technology advancement, skill development and job creation for empowerment of this sector, however, it didn't land well, on the ground according to some industry bodies.

Since, a few hours left to bid adieu to 2019, KNN India spoke to several industry bodies about their experiences, challenges they faced this year and what they expect from the coming years which might help to bloom MSMEs in 2020.

While interacting with Animesh Saxena, President, The Federation of Indian Micro and Small & Medium Enterprises (FISME), who, like other MSME industry bodies believed that the 2019 was the most challenging year for the industries to run their businesses.

''It has been a very challenging year because of the economic slowdown and credit squeeze. To run businesses especially for MSME sector, it was a challenging period. In this adverse economic condition the survival was the main issue,'' Saxena said.

Saxena further remained optimistic and hoped that worst is over and in the forthcoming budget, will surely have a solution to the problems which are being faced by the MSME.

''So, we are now hoping probably that is worst is over and in the coming year, we expect better support from the  government in the budget to ease out the fund availability and the issues being faced by MSMEs,'' he expected.

So, we are optimistic that thing will start looking up, FISME president added.

Speaking about the expectation from the government, Saxena said, ''expectation from the government are high, especially much more handholding for the MSME and access to the decision makers for taking our grievances and fast readdressal of those grievances. This our expectation from the government in the coming years.''

The Gurgaon-based industrialist also urged government to provide support to people who wants to start a new industries which will provide scores of jobs to young people.

''Apart from these, we expect government to provide some support to the people who wants start new industries in terms of availability of infrastructure from the land to building. Come out with a step like plug and play kind of facility. We are also expecting to generate the growth,'' he asserted.

Chairman, Federation of Industry & Commerce of North Eastern Region (FINER) was of the same view and said that it was a tough year and besides this protest again Citizenship Amendments Act (CAA) almost ruined the industries here and hence the region was expecting some investments which were drowned due to this protest.

''It was a tough year, no doubt in it, and due to recently strike over CAA, industries here suffered a lot. Like there were some investment which were about to come, but due to this strike they those investors were forced to hold their plans,'' Joshi asserted.

''Indo Japan summit were also cancelled due to this CAA strike, which could have brought some investments in the state,'' Joshi added.

However, Joshi too hoped and expressed faith in the leadership that in the next year there will some good steps from the government side and unemployment problems in the region will be vanish.

''There is also an unemployment problems in the region which we expect to solve in the next year through industries. We also expect some good atmosphere in the 2020 so that industries here can flourish. Things like these need to be addressed in the coming year. We have full faith in the leadership, the sooner it is addressed thein it will be good for everyone. Earlier, we had suffer a lot.'' he avowed.

Slamming government over the GST failure, Badish Jindal, president Federation of Punjab Small Industries Association (FOPSIA) termed 2019 as worst a year in the history of India.

''It was a worst year in the history of India in terms of businesses. And the other thing is that despite several amendments, government failed to handle GST,'' he said.

The FOPSIA president demanded relief package for the industries in the coming year, and said, ''they should also lower down the GST on the auto parts and on other items, and they should do on the priority basis. Government must increase the spending on the development of the industries.''

''The budget of MSMEs needs to be increased from 5000 cr. The banks should be told to decrease the interest rates,'' he suggested.  

''It has been a very harsh year, if you take an overall scenario, it’s been a very tough year. In the coming year, we think better for the future,'' said Manesar Industries Welfare Association (MIWA), Manmohan Gaind, Vice president.

Agitated over the current scenario, Gaind said, ''I don’t think people from the central government living in the realistic world, they need to understand that businesses cannot be changed overnight which they are trying to do that.''

Gaind hoped that business and demands will go up in the next year and expected government to change attitude towards the MSME sector.

''They should nurture MSME in the coming year,'' he hoped.