Congress Criticizes Modi Government's Handling of MSMEs Ahead of Budget

The Congress party has accused the Modi government of systematically damaging India's Micro, Small, and Medium Enterprises (MSMEs) over the past decade through poor policy decisions. Ahead of the upcoming Budget, Congress outlines its pro-MSME agenda, calling for significant policy changes to support MSME growth and sustainability.

The Congress on Tuesday accused the Modi government of systematically harming India's MSMEs over the past decade through a combination of detrimental policies and neglect. The party asserts that the upcoming Budget will be judged on its initiatives to revive and rejuvenate MSMEs.

Congress General Secretary Jairam Ramesh criticized Prime Minister Narendra Modi's economic agenda, urging the government to abandon 'cronyism' and haphazard policy-making. MSMEs make up 30% of India's GDP and employ 12 crore people, second only to agriculture. However, Ramesh claims the sector has been gravely impacted by measures such as demonetization and GST implementation.

Ramesh argued that policies like corporate tax cuts and selective government contracts have led to oligopolies that stifle MSMEs. He also highlighted the adverse effects of cheap Chinese imports on domestic MSMEs. With the Budget announcement approaching, Congress has proposed a series of pro-MSME measures, including a revised GST structure, extended loan classification periods, and better funding mechanisms to bridge the USD 530 billion credit gap in the MSME sector.

(With inputs from agencies.)