Tech MSME’s reaction on FM Nirmala Sitharaman’s announcement
Finance Minister Nirmala Sitharaman made an announcement on Wednesday regarding the Economic Package. In this package, the minister has declared Rs. 3 lakh cr will be issued to MSME's as collateral-free loans. She even gave a new definition for the MSMEs. After such an announcement, here's what the tech industry had to say:
Mr. Raman Singh, Co-Founder and CRO, CloudConnect Communications, said, “Amid these bleak times, today’s announcement by Finance Minister Nirmala Sitharaman comes as a bright ray of hope. The provision of collateral-free loans to the tune of INR 3 lakh crore for MSMEs will provide a much-needed fillip to the small businesses that form the very backbone of the Indian economy. Further, the infusion of INR 50,000 crore through the MSME fund of funds will bolster the country’s flourishing start-up landscape. Prime Minister Narendra Modi’s commitment towards a self-reliant India is commendable. As an MSME that works to empower other MSMEs, we are grateful to the government for its forward-looking initiatives.”
Mr. Ankit Chaudhari, Founder and CEO, Aiisma, said, “Some of the basic tenets of MSME economy that will enable greater immediate liquidity at some ends with moves like collateral-free loans, lower TDS deductions & extended tax timelines is visible in the declarations. What remains to be seen is the detailed roll-out of the loans eligibility schemes etc as well as if the immediate reduction in TDS liability really ends up in market liquidity as it still continues to be a liability. A very ambitious target & therefore probably more details will emerge over the coming days as information for new units, startups etc are declared and a 360 review, as well as an understanding of the stimulus, is established.”
Mr. Atul Rai, Co-Founder & CEO of Staqu, said, “The announcement of collateral-free automatic loan is a commendable move by the government. It will strengthen our MSME industry which has been going through a period of turmoil. The ‘Vocal for Local’ is, moreover, a great initiative and will provide necessary impetus to PM’s vision of a self-reliant India. We are hopeful that these steps will help boost the market and act as a catalyst in positioning India as a leading manufacturer of goods and services.”
Mr. Aakrit Vaish, Founder and CEO, Haptik, said, “The Covid-19 economic relief package has been a welcome boost to the stressed MSME sector. The equity support to MSME’s will help businesses that have been heavily impacted. The reduction in EPF contribution will help employees increase their take-home pay and provide relief to employers. With more cash in hand to the salaried employee, consumer spending is likely to improve. This is a much-needed stimulus that is bound to jump-start the economic wheels and improve market sentiment''
Mr. Pulkit Sharma, Co-Founder and CEO, Khabri, said, “As part of the Indian startup ecosystem, we feel the government has taken great measures for MSMEs. These measures would strengthen the larger ecosystem and we see it as a bigger step with long term commitment to revive and grow the economy to make India “Atmanirbhar”
Measures like Equity infusion & collateral-free loans will help MSMEs who are in dire need of money and help them sustain through this crisis and avoid closure.”
Mr. Mike Chen, General Manager, TCL India, said, “We welcome the effort by the PM and believe that this will help revive the economy. Expecting it to push electronics manufacturing in the country, to help boost the supply chain. The pandemic has an impact on daily life as well as on professional life. We understand the impetus it will have on the economy. As an electronic company, we want to support our customers. And we would be glad to receive more boost from the government.”
