Enhancement of investment limit for MSMEs will not ease existing issues being faced by the sector: IIA

Lucknow, May 15: The enhancement of investment limit for MSMEs, as proposed in the MSMED (Amendment) Bill 2015 and by the One Man Committee for National MSME Policy, will not ease the existing issues being faced by the sector, Indian Industries Association (IIA) said in a letter to the Ministry of MSME.

The industry body IIA has written a letter to the Ministry of MSME, Government of India, making suggestions for re-classification of enterprises into micro, small and medium.

In the letter, IIA said it has opposed to any change in the existing classification of MSME’s as proposed in the MSMED (Amendment) Bill 2015 and also as proposed by One Man Committee for National MSME Policy on several grounds.

“At present the Micro and Small Enterprises with the existing investment limits are facing several problems including non-availability of finance, marketing, delayed payments, complexities of acts & rules and so on. Enhancement of investment limit is not going to ease out any of these problems. Let us first handle these problems and then think of stretching their size,” Manish Goel, President, IIA, said in the letter.

By enhancement of investment limit bigger fishes (MSMEs) will be added in to the pond of smaller fishes (MSME’s) who will eat away the share of smaller MSMEs e.g. in public procurement and MSME Budget etc, he addded.