GJEPC shares suggestions for MSMEs and government to keep small businesses afloat

By

Isabelle Crossley

Published
Jun 3, 2020

The Gem and Jewellery Export Promotion Council suggested that small businesses focus on keeping manpower and electricity running to ensure longevity and that the government offers financial support in its three part webinar series on micro, small, and medium enterprises.

 
Panellists at the third and final GJEPC MSME webinar agreed that MSMEs have driven India’s industrial and economic development, but will have to start from scratch after the coronavirus crisis subsides, the GJEPC announced on its website. The webinar was hosted by the GJEPC’s MSME department at its office in Mumbai and included government workers and private organisations relating to the sector.
 
The webinar’s panellists, including the GJEPC’s MSME convenor and moderator Manish Jivani, encouraged MSMEs to handle their cash flow carefully at present to retain adequate resources to restart after lockdown. Other suggestions included assessing present debt and future credit requirements. 

The panellists told MSMEs to refrain from deferring on high-interest loans and, instead, defer on lower interest loans if necessary. Small business owners must save all the funds they can at present and prioritise continuing to pay manpower and electricity costs, as continuing these is essential to keep businesses running, panellists said. 
 
The GJEPC and panellists suggested that the government extend its 2% interest subvention scheme until March 31, 2022 and increase the amount to 4% for new loans. The government could also introduce a new credit rating system, they said.
 
The webinar highlighted six focus areas for the MSME sector for the future. The areas were consolidation and financial restructuring; technology for quality, productivity, and cost; competitiveness; ‘new age skills’; speed of change, adaptation, and sustainability; and ‘go local and go global’.