Expecting financial package for MSMEs soon: Gadkari

Union Minister Nitin Gadkari has said he expects a financial package to be declared by the government for micro, small and medium enterprises sector soon. The MSME sector, which contributes 29 percent to the country's growth and 48 percent to exports, is a major employment generator.

However, the sector is facing a huge crisis amid coronavirus pandemic, with millions of units staring at losses and the prospect of job cuts as they struggle to survive. "There is serious thinking in the government and we are trying our level best. We are consulting all stakeholders and...different departments are consulting each other... We are trying our level best to get a good package to MSMEs where the problem is serious and we are supporting them," the MSME minister said.

"I am expecting that as early as possible the package will be declared by the government," Gadkari told a TV news channel. Besides, he said, a special joint secretary has been appointed for coordination with state governments and all foreign companies, who want to invest in India.

Gadkari also said the foreign companies "will get all types of clearances within 3 months" along with red carpet treatment, transparency, time-bound decision-making process, and corruption-free system. "There are a lot of concessions already available for different types of industries, we will give the same concessions also for foreign investment also. So, we are thinking that which are the major concessions that we can offer to foreign investment in the country," the minister added.

Prime Minister Narendra Modi on Saturday underlined the need for new structural reforms and expedite work on infrastructure projects to revive the economy reeling under the impact of coronavirus-induced lockdown. He made these observations during a series of meetings held on Saturday to discuss strategies and interventions in the financial sector as well as structural reforms to spur growth and welfare in the current context.

The series of meetings with key Cabinet ministers, officials of economic ministries is likely to culminate into a second stimulus package for sectors, including MSME and the farm sector, hit hard by the outbreak of COVID-19 pandemic. MSME Minister Nitin Gadkari had said that his ministry has suggested a relief package to the prime minister and the finance minister for the medium, small and micro sector and exuded confidence that an announcement would be made soon.