Assocham President skeptical of efficiency of micro enterprises under PLI scheme

New Delhi, 9 Nov (KNN) In a recent interview with Financial Express, Vineet Agarwal, President, Assocham and Managing Director, Transport Corporation of India said, “I think the PLI scheme is not going to work too efficiently for micro enterprises, as a bit of a scale is required for micro units and there could be some growth opportunities for them.”

He pointed out some of the biggest challenges that exist, one being a lack of awareness and communication about such schemes.

It’s important for everyone to benefit from a trickle down effect of PLI scheme, hence there must be tier one and tier two suppliers, added Agarwal.

Speaking on the labour market, he said that it is quite fluid right now and thinks it’s just a wave.

“We are seeing good demand for people in the formal employment sector, specifically, in MSMEs. Many of the MSMEs are actually finding it challenging to get the right people because they need to constantly upgrade skillsets for people. So that’s also been an issue. But I think overall, it has become quite positive,” opined Agarwal.

In view of the rising input prices, he expressed that there are challenges for MSMEs and said the only way here is if they are able to pass them on to their consumers directly wherever possible.

“I think that has started to happen and MSMEs have been able to move some of those costs out with a little bit of absorption into businesses as well,” stated Agarwal.