Home / Knowledge / News / Easy reimbursement of VAT is necessary for SMEs – FICCI
Easy reimbursement of VAT is necessary for SMEs – FICCI
Jul '09
The government's initiatives for mitigating the hardship of SMEs have not really percolated down to the firm level. A whopping 94% of the small and medium enterprises catering to a large extent to the export market have been 'severely to moderately' hit by the current economic slowdown. These are the findings of a survey conducted by FICCI amongst small and medium enterprises in the country.

While at the firm level units are showing some resilience and are hopeful of recovery, their single point demand is for better financial accommodation by the banks at lower interest rates. It has been reported that the interest subvention announced for SME exporters is not reaching the intended beneficiaries at the ground level.

The respondents have also clearly stated that their knowledge about the incentive schemes that have been announced by the government is rather limited. Clearly, an action programme for better communication of government initiatives for the SME sector is called for.

Global economic slowdown and flagging demand in both the domestic and the global markets have affected Indian companies adversely. Small and Medium Enterprises (SMEs), in particular, have received a hard knock. These enterprises are struggling to stay afloat, buffeted as they are with several challenges. This has been clearly brought out in a survey conducted by FICCI which drew responses from SMEs spread across different sectors and regions.

According to the survey results 94 per cent of the respondents reported that their overall business has been affected 'severely or moderately' due to the current economic slowdown, while just 5 per cent of the respondents said that they were not at all affected by the present turbulent situation. The participating companies indicated that they have lost most of their major markets primarily in Europe and United States and are struggling to find new markets for their products.

In order to provide some immediate respite for the SME sector, which is facing a lot of problems, the participating companies felt that lowering cost of financing and having additional fiscal support from the government is the need of the hour.

Some other suggestions indicated by the respondents to further strengthen the base of the sector include:

• Faster processing of loan applications
• Support from government for technical up gradation
• Setting up of more training institutes to provide skilled manpower for the sector
• Availability of quality control facilities close to the clusters
• Improved information dissemination about schemes and incentives at ground level
• Increase in DEPB rates
• Easy reimbursement of VAT
• Easier availability of packing credit at better rates
• Better marketing support like participation in fairs abroad for buyer seller meets. Holding awareness programmes / seminars for SMEs and educating them on how to increase productivity, target new markets and make products commercially viable.

Must ReadView All

Textiles | On 27th Jun 2017

Govt defers tax deduction at source provision under GST

E-commerce players in India will not be required to deduct tax on...

Apparel/Garments | On 27th Jun 2017

Future Group aims Rs 12,000 crore in fashion business

Future Group, which runs retail stores across India under various...

Textiles | On 27th Jun 2017

AEPC & NSDL to help exporters with GST compliances

Apparel Export Promotion Council (AEPC) and National Securities...

Interviews View All

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Jurgen Gauger

‘Buying crowdsourced or creative designs are much more appealing to the...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search