MODIFIED GOVERNMENT - WILL THE CORPORATES HAVE MORE-ACCHE DIN

The election results of 2019 have been a resounding mandate for the incumbent Government. With the hype and excitement of the result behind, the Indian corporates / industry can now focus on what they expect of the re-instated Government to do as a priority on the economic front.
There are certain areas which have been on the priority list of the previous Government. We may expect the Government in this tenure to extend its focus on these areas with renewed vigour:

1. Focus on MSMEs

MSMEs have been a key area of focus for the Government, and rightly so. As per the data maintained by the Ministry of Commerce, MSMEs contribute about 37% to the GDP and 43% of our exports. MSMEs employ a large part of our population and it is imperative that the sector receive major support from the Government to flourish. The Government has focused on improving the financial health of MSMEs. In that respect:

a. Recent amendments in the Companies Act focuses on filing return to the MCA by large corporates stating the amount of payment due to MSMEs by them and reasons for delay, if any. The Government is taking a serious view to ensure the development of the MSME sector and is mindful that they do not suffer in the hands of larger corporates by way of blocked working capital.

b. In addition, a Credit Guarantee Scheme has been introduced by the Government of India to cater to credit needs of the MSMEs at reasonable interest rates in order to enhance access of MSMEs to more capital.
• In the coming years, we may also witness:
• More focus on technological access and key upgradation on MSMEs.
• Additional technological centers to be set up for mentoring the skills required and prototyping of MSMEs, and
• Establishment of a National Traders Welfare Board and creation of National Policy for Retail Trade for the growth of retail business.
• These steps look to transform the MSME into more organized and regulated sector.