CIA bats for independent ministry for self-employed and micro businesses

The Consortium of Indian Associations (CIA) has suggested the setting up of an independent ministry for self-employed and micro business to address sector specific issues and amending the Micro, Small and Medium Enterprises Development Act, 2006, to strengthen the state facilitation councils.

Further, it has stressed on the need for the government to adopt a three-pronged approach towards micro businesses for at least 12 months to mitigate the challenges being faced by the sector.

“The sector must be exempted from statutory compliances, penal actions and litigation and must be given protection from the high interest burden, price wars and high cost of raw materials,” it said.

Further, the government must support the sector through liberal loans, clearing off the pending dues, offering moratorium with interest waiver,” it added.

“Though the government has been talking about the ‘ease of doing business’, micro entrepreneurs continue to be governed by complicated and outdated laws and dispensable compliance burdens,” CIA said on Wednesday.

“Given this, CIA feels that the government should revisit the laws governing the sector,” it said.

CIA conducted a nationwide survey conducted by the 25 Associations after the presentation of the Union Budget for 2023-24. The survey covered the opinion of 1,08,500 self-employed with respondents including manufacturers (52%), service providers (10%), self-employed (11%) and exporters (9%).There are around 63 million micro, small enterprises (MSEs) and 40 million self-employed individuals in the country, as per the CIA.

Citing the survey, CIA said that during the last five years the performance of 72% of the respondents is either stagnant or have decreased while only 28% of the respondents said that they were growing.

“76% of the respondents have said they are not making a profit currently while 45% feel there is no ‘ease of doing’ feeling that exists in starting or running or closing or in their living style,” it added.

Responding to the Union Budget, CIA said that 87% of the MSME respondents felt the budget was disappointing or a big letdown. “Furthem, 69% of the respondents have said they have not availed themselves of any government support so far,” it added.