Business

Stimulus has not helped MSMEs: AIMO survey

No visible benefits yet: respondents

Over 78% of the 60 million MSMEs and 83% of self-employed have expressed unhappiness over the financial stimulus announced by the Centre recently as they have not seen the direct benefits of it over the last three weeks, according to a survey conducted by the All India Manufacturers Organisation (AIMO).

“When the FM announced the details, everyone believed it was more than sufficient to tide over and rebound from the crises. However, over the last three weeks, the positive mindset has turned into a confused mindset for many of those who responded as they have not experienced the direct benefits of the package despite many visits to the banks,” said Harish Metha, national vice-president, AIMO said.

AIMO conducted a nation-wide survey in association with D4E and other trade bodies. The results were published in three parts, with first the two parts covering the predicament of industries and pain points and unemployment during three months lockdown period.

The final part of the survey was conducted to understand the opinions of 46,525 respondents on the action taken by the Centre with regard to revival of industry, particularly MSME.

“It is apparent from the survey the ₹3.50 lakh crore package is ‘adequate’ for the MSME sector. But, the methodology of allocation and mechanics of implementation are still unclear among those surveyed,” said Kenny Ramanand, honorary general secretary, AIMO.

“Every day is important in the current situation and any delays or the uncertainties of whether or not they qualify is causing considerable business stress. Almost 74% of those responded have felt the package could be better and only 9% have said this is perfect, while 17% said no comments,” Mr. Ramanand added.

According to K.E. Raghunathan, former national president, AIMO, the stimulus package failed to address issues such as alternative finance to those who do not qualify for the loan scheme announced; support and hand holding to start-up enterprises; relief for self employed; relief from interest on EMI payments; salary payments to employees during lock down time and demand creation.

Most of these respondents felt that the government should have restructured the package to aid demand creation, which in turn would help their businesses. Loans are made available and many are afraid to avail loans as repayments are tough in these times ” Mr. Raghunathan added.

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Printable version | Jul 14, 2020 6:49:26 AM | https://www.thehindu.com/business/stimulus-has-not-helped-msmes-aimo-survey/article31781847.ece

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