India : Demonetisation will help the MSME sector: Kalraj Mishra

Home / Knowledge / News / Textiles / Demonetisation will help the MSME sector: Kalraj Mishra

Demonetisation will help the MSME sector: Kalraj Mishra

28
Nov '16

Demonetisation is causing initial problems, but it is not likely to have any major impact on the job scenario of the micro, small and medium enterprises (MSME) of India, said Union MSME minister Kalraj Mishra. He said that after currency flow is regularised in the country, the move will help the sector and result in a favourable outcome.

“We are trying to instil confidence in them and talks are on. Our officers are on the job and we will find out a solution. There will be no impact in the sector and outcome (of demonetisation) will be good,” Mishra told a news agency.

Mishra assured the people working in the MSME sector that the cash crunch due to the demonetisation of Rs 500 and Rs 1,000 currency notes will not result in layoffs. He also said that MSME companies will take up the issue with Arun Jaitley, Union finance minister, during the pre-budget meeting to urge the Centre to assess the situation and ensure sufficient supply of cash.

Transactions in the MSME sector are mostly carried out in cash, and it is one of the most affected as it is experiencing a slowdown in exports due to Brexit as well as costlier loans from banks. As companies are left with limited money, workers in the sector could lose their jobs, said Anil Bhardwaj, general secretary, Federation of Indian Micro and Small and Medium Enterprises (FISME).

The withdrawal limit of Rs 50,000 for small businesses is not sufficient for the sector, considering that most payments are carried out in cash. A repayment window of 60 days has been provided by the Central bank for dues payable from November 1 to December 31. (KD)

Fibre2Fashion News Desk – India

More Textiles News - India...