Business & Finance

More Than 6.3 Crore MSMEs on Verge of Economic Ruin: Sonia Gandhi

Sonia Gandhi Writes To PM Modi highlighting that the MSME sector is bearing around Rs 30,000 crore loss every day due to the lockdown.

New Delhi| On Saturday Congress President Sonia Gandhi wrote to Prime Minister Narendra Modi on the grave economic crisis the nation is heading towards. She urged to announce a stimulus for the financial recovery of the MSME sector.

Congress interim president, in the letter, emphasized the matters of the micro, small and medium scale enterprises (MSME), saying if neglected, the problem can have a disastrous and expansive ripple effect on the nation’s economy.

“The Centre needs to launch a series of steps to meet this crisis head-on or risk a much large economic crisis down the road,” Sonia Gandhi said. She has suggested a five-step measure to help the sector.

Gandhi requested the PM Modi to provide a Rs 1 lakh crore “MSME Wage Protection” stimulus as also a credit guarantee fund of an equal amount, besides a 24X7 helpline for leading them out of this crisis.

The MSME sector provides one-third of the Gross Domestic Product and accounts for 50% of exports, she said.

Also Read: Lockdown In Mumbai, Pune, Delhi To Extend Till Mid-May

MSME sector is sustaining nearly Rs 30,000 crore loss every day due to the ongoing national lockdown and attempts should be made to help revive them as they are the spine of the economy.

Few states are contemplating the possibility of continuing the lockdown beyond May 3 while others are planning on limiting it to containment zones and their buffer areas and not the whole districts.

Telangana is the only state in the country to extend the lockdown till May 7 so far.

India’s growth projections by many national and international organisations have been very low as the world steps into the worst recession in its history.

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