New Delhi, Dec 31 (KNN) For Micro, Small and Medium Enterprises (MSMEs) the year 2018 was full of ups and downs as on one hand government initiated various programs and schemes for the benefit of MSMEs whereas on the other hand GST and demonetization affected them badly, opined various MSME associations while talking to KNN India.

Karnataka Small Scale Industries Association (KASSIA)

Speaking to KNN India, Vice-President of Karnataka Small Scale Industries Association (KASSIA), R. Raju said, "Due to various factors like GST and demonetization, MSMEs suffered a lot throughout the year 2018.”

Suggesting measures to improve the condition of MSMEs, he said “Various modifications are required in different sectors, as far as GST is concerned. We need a proper system to improve GST framework.”

In addition, he pointed, instead of giving incentives to small industries, state government is facilitating big companies like Honda and Tata.

With regard to exports, he said that challenges related to exports needs government attention in 2019 to boost the exports of manufactures of small scale industries.

Appreciating government’s initiatives, he said “We expect 2019 to be a good one for MSMEs, as lot of rationalization is going on in GST.”

Bari-Brahmana Industries Association (BBIA)

On one hand, Chairman of Bari-Brahmana Industries Association (BBIA), Jammu, Lalit Mahajan thanked the state government for the grant of central package of incentives on the North Eastern pattern to the industrial sector of J&K.

On the other hand he wants to draw the attention of government on grant of incentives linked to investment in plant & machinery.

He said “Micro & Small Sector is the most suffered sector due to limited capital funds available for the investment in the plant & machinery.”

He asked for the grant of proposed DIPP incentives to existing units and units under substantial expansion and revised IDS norms.

Coimbatore District Small Industries Association (CODISSIA)

President, Coimbatore District Small Industries Association (CODISSIA), R Ramamurthy said, “The year 2018 posed big challenges for MSMEs because of GST. Though, MSMEs had partially overcame them in the year 2018 but still suffering from its bad effect.”

Talking about increase in tax on raw materials he said, “Raw material prices were very high in 2018 compared to the previous year. There is a sudden escalation of 35% tax, which will affect MSMEs majorly.”

Ramamurthy mentioned that small scale industries are only depending upon banks for funds and have no equity to have sudden escalation.

In nutshell, he said “The overall journey of MSMEs in the year 2018 was fine with certain improvements.”

Calling MSMEs the backbone of Indian economy, which provides employment to about 2,000 crore people, he said “For MSMEs, we have requested a separate MSME package in the 2019 budget.”

Commenting upon the need of skills he said, “MSMEs should be the priority as MSMEs give employment to unskilled people and make them skilled.”

“If we calculate turnover of all the MSMEs, it is very high but not given importance by the government.”

The MSME turnover plays crucial role in the growth of economy as it impacts the GDP and if the sector does not performs well it affects the overall growth of economy, he added.

With high hopes from the government in coming year, he said “In 2019, we expect that some privileges should be given to MSME sector.”

Besides, we want the rules of bank to be formulated in such a way that MSMEs get the funding in a proper and flexible way.”

He strongly pointed that NPAs are very low in MSME sector.

Federation of Punjab Small Industries Association (FOPSIA)

The year 2018 was one of the worst year for MSMEs, said Badish Jindal, President of Federation of Punjab Small Industries Association (FOPSIA).

Blaming government for introducing GST and implementing demonetization, he said “these decisions of government affected large number of small and medium industries.

Jindal while mentioning his expectations from the Government in 2019 said, “Government must come up with a simplification in GST. We are expecting some relief in the budget also. We also expect relaxation in norms. From banks we expect to lower the interest rates for MSMEs.”

“We were also expecting a relief in the budget, which was again not there for the industries. Our exports also declined,” he added.