DMK parliamentarian T K S Elangovan on Wednesday expressed concern over the decline in the share of MSME sector in the country's GDP to 28 per cent from 45 per cent in 2011 and said smaller industries were suffering due to lack of bank financing.
Initiating the discussion on working of the Ministry of Micro, Small and Medium Enterprises (MSME), he said the allocation to the sector was lowered in the revised estimate during 2018-19.
Elangovan said micro, small and medium enterprises need funds for technology upgradation and infrastructure, but banks were not proving funds.
The government should support small industries and banks should lend, he added.
Stating that the MSME sector provide huge employment opportunities to people, the DMK leader said the government should re-evaluate its strategy and provide support to this sector for economic development of the country.
Countering his charges, Arun Singh of the BJP highlighted various initiatives by the central government to strengthen the MSME sector.
He said there was no development in the MSME sector in the last 70 years because of piecemeal approach by previous governments.
Participating in the discussion, Amee Yajnik of the Congress said demonetisation has finished this sector and "we have to face it".
"You cannot run away, you cannot remain in denial mode," she said, requesting the minister to look into the budgetary allocation and consider simplification of schemes so that it can reach the last person.
A Vijayakumar of the AIADMK said Tamil Nadu continues to be a vibrant industrial state with a large base of big factories and small units, with the state having an estimated seven lakh registered MSMEs or 15.1 percent of all such units in the country.
"I urge the government to allocate Rs 5,000 crore as one-time special package to support the MSME sector in Tamil Nadu," he said, adding that because of the coronavirus outbreak, the production has been suffering for two months.
Ravi Prakash Verma of the Samajwadi Party said MSME units are the backbone of the economy but the sector is facing distress due to various factors.
He urged the Centre to raise the budgetary allocation for the MSME ministry.
As per Budget estimates, an outlay of Rs 7,572 crore has been earmarked for the MSME Ministry for 2020-21.
Sasmit Patra of the BJD said the coronavirus outbreak is going to negatively impact the MSME sector.
Elamaram Kareem of the CPIM said MSMEs play a crucial role in providing large-scale job opportunities with the sector employing over 11 crore people.
He said the MSME sector has suffered the most due to demonetisation and "unscientific implementation" of the Goods and Services Tax (GST).
Anil Desai of the Shiv Sena said consumption slowdown and liquidity constraints have severely impacted the MSME sector.
Manoj Kumar Jha of the RJD said the government and Opposition parties can collectively draw a blueprint to help the MSME sector.
He said signals are "worrisome" and the sector is going to "bleed" particularly in view of the economic slowdown.
Binoy Viswam of the CPI said if the government is serious about MSMEs, first of all it should undertake a study on the impact of demonetisation on the sector.
Praful Patel of the NCP said the MSME sector needs to be supported as crores of livelihoods are dependent on it.
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