: LUB alleges new MSME classification will defeat ‘Atmanirbhar Bharat’ campaign; seeks PMO intervention #FinanceIndia #StockMarketNEWS LUB alleges new MSME classification will defeat ‘Atmanirbhar

@StockMarketNEWS Mon 06 Jul, 2020

Posted in: #FinanceIndia #StockMarketNEWS

LUB alleges new MSME classification will defeat ‘Atmanirbhar Bharat’ campaign; seeks PMO intervention #FinanceIndia #StockMarketNEWS
LUB alleges new MSME classification will defeat ‘Atmanirbhar Bharat’ campaign; seeks PMO intervention New Delhi, Jul 3 (KNN) In Month of May, the government had changed the definition of Micro, Small and Medium Enterprises (MSMEs), however, it didnt go well with the RSS-affiliated Laghu Udyog Bharati (LUB) as it has sought urgent intervention from the Prime Ministers Office (PMO).

LUB asserted that the new MSME classification criteria would end up defeating the objectives of Prime Minister Narendra Modi’s ‘atmanirbhar Bharat’ campaign, and pave the way for increased imports of foreign manufactured goods.

The MSME trade body claimed it will allow large corporates and multi-national companies (MNCs) to have indirect control of the manufacturing sector in India through their subsidiaries.

"It will also promote trading of imported goods rather than manufacturing and innovation in our country as there is no direct incentive for the Micro and Small Industries (MSIs) to do so. The inclusion of service enterprises and trading services with increased turnover limits will provide all the privileges of MSIs to them by depriving the MSIs," said a statement jointly issued by Laghu Udyog Bharati President Baldevbhai Prajapati and Secretary General Govind Lele.

As part of the new definition, exports will not be counted in turnover for any enterprises whether micro, small or medium.

The MSME trade body further said that these exclusions and the substantial increase in the previous limits, together are likely to provide a window for bigger medium and large scale industries to indirectly squeeze in the MSME space, exploit the concessions and privileges, particularly priority lending norms given to banks for the MSME sector and the 25 per cent purchase reservation policies for government departments and public sector undertakings (PSUs).

This will certainly lead to the already beleaguered MSIs to face further hardships as they are incapable of competing with the mighty ‘medium and large-scale industries,” it added.

The trade body has urged PMO to take immediate cognisance of the issues and direct concerned departments to take corrective actions.