PM asks FICCI to help MSMEs recover dues from big firms

Prime Minister Narendra Modi on Wednesday called upon industry chamber FICCI to handhold small enterprises and make efforts to ensure that the dues owed to them by big companies are cleared expeditiously.
He also asked it to play the role of a think-tank for the micro, small and medium enterprises (MSME) sector.
Addressing industry captains, he exhorted them to pledge to the creation of a new India that fulfils the aspirations of the poor and the needy, gives fillip to domestic industry and where MSMEs are hand-held by large corporate to serve the requirements of the people in every nook and corner of the country.
Modi said FICCI has a role in making the goods and services tax (GST) more effective and the more formal the system becomes, the more it will benefit the poor.
He said that FICCI must voice concerns, when necessary, on issues such as builders exploiting the common man.
“I have been told that FICCI’s MSME vertical, a sector that plays a crucial role in the economy, was established in 2013. In a 90 year old institution, the MSME vertical was constituted just 4 years ago,” Modi said.
“I would not comment further but will definitely say that this vertical can help in spreading awareness about MUDRA Yojana, Start Up India, Stand Up India,” he added.
While addressing FICCI’s 90th AGM in New Delhi, he said that when such an experienced organisation handholds small enterprises, they will also work with renewed vigour and become successful.
Modi highlighted that the government has taken a big initiative, the Government e-Marketplace (GeM), suggesting that FICCI should also increase efforts to link small businesses to it.
He observed that if institutions like FICCI make efforts to resolve the issue of small enterprises’ dues outstanding with big companies, the economy will acquire a fresh pace.
Modi said, “Can you do something to clear the MSME dues lying with big companies on time. There are rules in place, yet it is true that dues of small enterprises are generally stuck with big firms.
“Small entrepreneurs are scared of demanding their rightful dues stuck with big enterprises in the fear of losing business. If institutions like FICCI make efforts to solve this problem of small enterprises, the economy will get a new pace,” Modi said.
He said the government is working to protect the interests of the account holders, but rumours that are being spread are the exact opposite.
Organisations such as FICCI have a responsibility to generate awareness about such issues, he added.
It will enable easier availability of credit from the banks, and reduce cost of logistics, thereby enhancing competitiveness of businesses, Modi said. “I hope FICCI has some plan to generate large-scale awareness among small traders.”
FICCI’s outgoing president Pankaj Patel said the chamber expects India’s economic growth to cross seven per cent on the back of reforms undertaken by the government.
However, he said the need of the hour is to grow between 9-10 per cent per year for the next 30 years.
“This is imperative if we have to engage the poor in development, reduce inequality and most importantly to generate direct and indirect employment the speed of 20 million jobs per year,” he said.