The crippling effect of the COVID-19 has affected the operations of MSMEs. Ongoing Pandemic is creating challenges for small businesses in the form of coal shortage, shipping container crisis, and upsurging the raw material prices. While these MSMEs are trying to cope with uncertain times, the government, like a guardian angel, has come up with relief measures.
Anil Bhardwaj, the Secretary-General of the Federation of Indian MSMEs, mentioned that domestic manufacturers’ artificial jacking up of prices is a big issue.
As per the All-India Council of Association, micro, small and medium enterprises showcase around 200 associates, there has been an increase in the percent of prices to 150. For Example, aluminium alloys have witnessed an increase in the price from Rs 106/kg to Rs 270/kg from April 2020 to October 2021. R Ramamurthy, a member of AICA, mentioned, “To follow the goal of Atmanirbhar Bharat, we need to reduce raw material prices to pre-Covid levels.”
AICA also requested a banking policy that solely focuses on the process of application and disbursement for the credit department for all the small ventures. Along with an increase in the working capital with a reduction in the GST rates.
Businesses with a turnover under INR 40 lakh are not under the mandate count of listing themselves under the GST registration. This is for those users that do their businesses through the e-commerce platform.
Updates For Union Budget 2022-23
| Union Budget of India |
