Telangana MSMEs struggle to regain balance

Raju said that credit had been declined in multiple cases and debtors were mounting pressure on MSMEs.
Image for representational purpose
Image for representational purpose

HYDERABAD: ALL has not been well with the micro, small, and medium enterprises (MSMEs) since demonetisation and introduction of the Goods and Services Tax (GST), said B Yerram Raju, Adviser and Director, Telangana Industrial Health Clinic Ltd (TIHCL).

Raju said that credit had been declined in multiple cases and debtors were mounting pressure on MSMEs. “Labour is on the exit following aggressive online sales as a recent Trade Body report revealed,” he said at an awareness programme on the ‘Role of Telangana Industrial Health Clinic in mitigating financial stress and strengthening of MSMEs’ organised by the Federation of Telangana Chambers of Commerce and Industry (FTCCI) on Friday.

He said, “Covid-19 pandemic has badly affected the MSMEs which are still struggling even after the announcement of Aatma Nirbhar Bharat schemes, as they are yet to be implemented fully.” 

Raju said, “Many MSMEs have been thinking of changing their products, processes, and markets, but have neither been getting the right advice nor the funding. In the past, RBI had issued guidelines for revival of viable manufacturing MSMEs but the banks have been hesitating to proceed.”

Ramakanth Inani, president, FTCCI in his welcome address said that sick MSMEs must be identified in their initial stages so that corrective measures to revive and rehabilitee them could be initiated. 

He appreciated the efforts made by the Telangana government to address the problems faced by MSMEs.

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