MSMEs and the Union
Budget 2017
This is the time of expectations amidst the gloom of demonetisation.
MSMEs hit worst in post demonetisation are looking eagerly to the FM for
careful crafting of fiscal policy to boost the morale of MSMEs, particularly
those in the manufacturing sector.
Banks have almost shut their doors to the manufacturing micro and small
enterprises by biting their teeth strong through the recently amended SAFRAESI
Act provisions. Their courage melts in the case of corporate defaulters. Large
corporate defaulters cast a shadow of default on their vendors in the small
sector and the banks are unwilling to buy this argument though the NPAs in the
small industry segment is not significant compared to their elder brothers.
