In a series of webinars held during the last week of May, the GJEPC’s MSME department at the HO Mumbai organized interactive sessions with experts from government departments and private organisations to spread awareness on the different initiatives taken to help Micro, Small and Medium Enterprises (MSMEs) across the country deal with the challenges thrown up by the COVID-19 pandemic.

The third and final session of this series was held on May 27 and addressed by Shri Rajiv Chawla, Chairman, IamSMEofIndia who spoke about “MSME Present and Future”, with Manish Jivani, GJEPC’s MSME Convener as the Moderator. The webinar was hosted by Mithilesh Pandey, Director, MSME / Membership.

Key Takeaways

MSME’s have been the growth engines of the Indian industry, but Post Covid -19 it will be like starting a second innings from scratch

Some sectors likely to be losers are Tourism & Leisure, Aviation & Maritime, Automobiles, Construction & Real Estate, Manufacturing (Non-Essentials), Financial services, while others such as Medical supply & services, Food Processing & Retail, Personal & Healthcare, ICT, Ecommerce are potential winners.

MSME have to carefully handle cash flow at present so as to be able to re-start post lockdown:

• Assess present debt and future requirements of credit;

• Where possible do not defer high interest loans, such as personal/unsecured loans while deferring EMIs of lower interest loans for future

• Save every penny and prepare to live with the little balance that you have.

• Ensure regular payments for manpower and electricity – both essential to re-start business

Consider the needs of the business regarding Medical Insurance for Owner and Employees (ESIC or Pvt), Covid Insurance, Business Insurance - Directors Liability, Business Risks, Workmen Compensation.

Government should:

• Extend 2% Interest Subvention Scheme till 31.03.2022 and enhance amount to 4% for new loans

• Increase limit of Rs 15 lakh for eligibility for 15% CLCSS for Technology Upgradation

• Introduce new credit rating system

• Permit waiver of prepayment or fore-closure charges

• Offer soft loan for entire tenure and not change after a year. Scheme should be Simple, Fair, Transparent.

Special Schemes of MSME Ministry which need to be re-activated are: Lean Manufacturing Competitiveness Scheme, Zero Effect Zero Defect Scheme, Quality Certification Scheme.

Exemption may be given when Capital Gains are invested in MSME sector

EPFO should be extended for units with up to 300 employees from present 100

Two ingredients for success : new skills and new technology.

6 Critical Focus Areas for MSMEs are:

1. Consolidation & Financial restructuring

2. Technology for Quality, Productivity and Cost competitiveness

3. New age skills

4. Speed of change, Adaptation

5. Sustainability

6. Go local and Go Glocal