‘Conduct study on impact of foreign direct investment on MSME sector’

Expressing concern over the delay in Delhi-Mumbai Industrial Corridor (DMIC) as well as poor offtake of a start-up fund, a […]

   

Expressing concern over the delay in Delhi-Mumbai Industrial Corridor (DMIC) as well as poor offtake of a start-up fund, a parliamentary panel has asked the government to push these initiatives for boosting manufacturing, besides conducting a study on the impact of foreign direct investment on the MSME sector.The panel in a report said that improving the performance of these initiatives will spur capacity utilisation of the industry which has slowed following the roll out of goods and services tax (GST) on 1 July.The standing committee on commerce noted that capacity utilisation of the manufacturing sector has remained “stagnant” over the last four years.After the implementation of GST and “uncertainties following that”, the capacity utilisation has been “subdued”, it said.The committee recommended that the commerce and industry ministry take effective measures to improve the capacity utilisation of the sector and realise its full potential.On the industrial corridor projects, it said that the progress in DMIC, which started in 2007, has just entered phase 1 and other such projects are only in the planning stage.“The committee finds the progress under the industrial corridors to be sluggish,” it said adding that the projects should be accelerated to provide a thrust.It also stated that the ministry should look into the “poor” offtake of funds from funds of funds and take remedial actions.Funds of funds was created to provide financial assistance to start-ups in the country.The report added hat 6,981 start-ups have been recognised as on 6 February, of which only 99 have been funded and 82 certified for claiming tax exemptions. The committee is concerned about this huge gap, it said.It suggested that measures be taken to ensure genuine entrepreneurs are provided all needed support.(With PTI Inputs)

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