New Delhi, Asserting that MSMEs are India's "job creators", Congress on Monday said the triple shock of demonetisation, GST and unplanned COVID lockdown has destroyed the MSME ecosystem in Tamil Nadu and alleged that today's India Unemployment crisis is "Modi". -Creation made".
Congress general secretary Jairam Ramesh said that before the BJP came to power, Tamil Nadu boasted of a thriving ecosystem of more than 10 lakh micro, small, medium enterprises (MSMEs), more than any other state.
“The triple shock of demonetisation, GST and unplanned COVID lockdown destroyed the MSME ecosystem. As Rahul Gandhi has been continuously highlighting for the last ten years and as he said at India Block's mega summit in Coimbatore on April 12 As reiterated during the rally, Rames, the MSME in Kongu, alleged that the Nadu region, the industrial heartland of the state, is still grappling with the mismanagement of the Centre.The Congress leader claimed that this "man-made disaster" brought almost all economic activities to a halt and businesses were unable to pay workers and consumption came to a halt.
He said, "MSMEs in Kongu Nadu, which were highly dependent on cash flow, suffered huge losses. More than 1,000 small factories in Tirupur closed down, unable to cope with the sudden economic turmoil. Textile exports are expected to reach Rs 30,000 crore. It fell from Rs 26,00 crore to Rs 26,00 crore. Said.Ramesh said the second blow given to MSMEs in Tamil Nadu by the NDA government was GST. "The highly complex tax regime was brought in hastily, with no regard for the huge expense it would impose on MSMEs," Ramesh said.
The impact of this, he said, was that while the effective tax rate of large enterprises increased from 27 per cent to 28 per cent, the effective tax rate of MSMEs became almost double that of the previous regime.
“By 2019, around 50,000 MSMEs in Tamil Nadu were forced to close their shops. More than 5.19 lakh people lost their jobs in 2017-18 alone.In Coimbatore, MSMEs were manufacturing pumps worth Rs 50 crore per day. After GST, trade volumes reduced. Textile exports from Tiruppur fell to Rs 16,00 crore in 2017-18." Ramesh further said production fell 20-25 per cent in the firecracker industry of Sivakasi, which employs three lakh workers. Supports.
He said the NDA's third attack on MSMEs came when the sector was recovering from demonetisation and GST, with the lockdown devastating MSM balance sheets and the migrant crisis also hampering labor supply.
Ramesh said, “MSMEs are India’s primary job creators.The devastation inflicted on them meant that by April 2020, Tamil Nadu's unemployment rate had reached 49.8 per cent, the highest in the country." "The July 2020 survey, conducted during the first phase of the COVID-19 pandemic, showed severe financial stress," he said. Got a signal. “31 per cent of MSMEs were considering taking loans from predatory moneylenders because commercial banks had refused to give them loans.”
The Congress leader said 55 per cent of MSMEs laid off employees during the pandemic, with 20 per cent reporting that they laid off more than 50 per cent of their workforce or had plans to lay off.
He alleged that at the national level, the Modi government's crony capitalism means deliberate neglect of MSME issues."While large corporations have been given massive loan waivers worth Rs 16 lakh crore, MSMEs have received no such relief," Ramesh said.
"Tamil Nadu Small and Tiny Industries Association (TANSTIA), the apex body of MSME associations in the state, demanded that the Central government create separate income tax brackets for MSMEs to differentiate them from big corporate firms. Their pleas fell on deaf ears, " He added.
Ramesh said the government has not intervened to help MSMEs, which are facing rising costs of raw materials from the cartel of large-scale steel, aluminum rubber and plastic manufacturers. In the Kongu Nadu region, about 2,000 viscose textile manufacturers GST refunds worth about Rs 1,200 crore are pending for weaving units, Ramesh said, adding that around 500 units have been closed due to pending refunds."Coimbatore District Small Industries Association has demanded reduction of GS rates on labor charges or job work done by micro and small engineering units from the existing 12 per cent to 5 per cent or zero. The demand has not been met." Said."MSMEs are India's employment creators. Today's unemployment crisis in India is created by Modi.Next time BJP claims to be pro-industry or pro-manufacturing, it should introspect on the damage it has done to Kongu Nadu in India. The most important industrial belt,” said Ramesh.
Congress general secretary Jairam Ramesh said that before the BJP came to power, Tamil Nadu boasted of a thriving ecosystem of more than 10 lakh micro, small, medium enterprises (MSMEs), more than any other state.
“The triple shock of demonetisation, GST and unplanned COVID lockdown destroyed the MSME ecosystem. As Rahul Gandhi has been continuously highlighting for the last ten years and as he said at India Block's mega summit in Coimbatore on April 12 As reiterated during the rally, Rames, the MSME in Kongu, alleged that the Nadu region, the industrial heartland of the state, is still grappling with the mismanagement of the Centre.The Congress leader claimed that this "man-made disaster" brought almost all economic activities to a halt and businesses were unable to pay workers and consumption came to a halt.
He said, "MSMEs in Kongu Nadu, which were highly dependent on cash flow, suffered huge losses. More than 1,000 small factories in Tirupur closed down, unable to cope with the sudden economic turmoil. Textile exports are expected to reach Rs 30,000 crore. It fell from Rs 26,00 crore to Rs 26,00 crore. Said.Ramesh said the second blow given to MSMEs in Tamil Nadu by the NDA government was GST. "The highly complex tax regime was brought in hastily, with no regard for the huge expense it would impose on MSMEs," Ramesh said.
The impact of this, he said, was that while the effective tax rate of large enterprises increased from 27 per cent to 28 per cent, the effective tax rate of MSMEs became almost double that of the previous regime.
“By 2019, around 50,000 MSMEs in Tamil Nadu were forced to close their shops. More than 5.19 lakh people lost their jobs in 2017-18 alone.In Coimbatore, MSMEs were manufacturing pumps worth Rs 50 crore per day. After GST, trade volumes reduced. Textile exports from Tiruppur fell to Rs 16,00 crore in 2017-18." Ramesh further said production fell 20-25 per cent in the firecracker industry of Sivakasi, which employs three lakh workers. Supports.
He said the NDA's third attack on MSMEs came when the sector was recovering from demonetisation and GST, with the lockdown devastating MSM balance sheets and the migrant crisis also hampering labor supply.
Ramesh said, “MSMEs are India’s primary job creators.The devastation inflicted on them meant that by April 2020, Tamil Nadu's unemployment rate had reached 49.8 per cent, the highest in the country." "The July 2020 survey, conducted during the first phase of the COVID-19 pandemic, showed severe financial stress," he said. Got a signal. “31 per cent of MSMEs were considering taking loans from predatory moneylenders because commercial banks had refused to give them loans.”
The Congress leader said 55 per cent of MSMEs laid off employees during the pandemic, with 20 per cent reporting that they laid off more than 50 per cent of their workforce or had plans to lay off.
He alleged that at the national level, the Modi government's crony capitalism means deliberate neglect of MSME issues."While large corporations have been given massive loan waivers worth Rs 16 lakh crore, MSMEs have received no such relief," Ramesh said.
"Tamil Nadu Small and Tiny Industries Association (TANSTIA), the apex body of MSME associations in the state, demanded that the Central government create separate income tax brackets for MSMEs to differentiate them from big corporate firms. Their pleas fell on deaf ears, " He added.
Ramesh said the government has not intervened to help MSMEs, which are facing rising costs of raw materials from the cartel of large-scale steel, aluminum rubber and plastic manufacturers. In the Kongu Nadu region, about 2,000 viscose textile manufacturers GST refunds worth about Rs 1,200 crore are pending for weaving units, Ramesh said, adding that around 500 units have been closed due to pending refunds."Coimbatore District Small Industries Association has demanded reduction of GS rates on labor charges or job work done by micro and small engineering units from the existing 12 per cent to 5 per cent or zero. The demand has not been met." Said."MSMEs are India's employment creators. Today's unemployment crisis in India is created by Modi.Next time BJP claims to be pro-industry or pro-manufacturing, it should introspect on the damage it has done to Kongu Nadu in India. The most important industrial belt,” said Ramesh.
