Piyush Goyal urges industry to make advance payments to pendemic-hit MSMEs

Says govt is striving to sign early harvest agreements with several countries; while FTA with UAE is nearing conclusion, talks with Australia for interim deal are at an advanced stage

Commerce and industry minister Piyush Goyal on Wednesday urged industry leaders to make advance payments to small businesses that have already been hit by the ongoing pandemic.

Timely payment to micro, small and medium enterprises (MSMEs) will help them in business continuity and boost employment and growth.

Goyal was speaking at a virtual meeting with heads of top industry associations to seek their suggestions and inputs to ensure quick rebound of economic activities to spur growth.

Pradeep Multani, President of industry lobby group PHDCCI Chambers, who was also at the meeting said in a statement that punitive measures may be taken against the habitual defaulters who do not meet their payment obligations as per agreed terms of maximum in 45 days.

“PHDCCI urges the large business firms and PSUs to release all pending dues of MSMEs to help them to meet their financial requirements in this extremely difficult time,” an official statement said.

Goyal further said that the government is striving to conclude early harvest agreements with several countries so that the benefits could reach industry soon. While a free trade agreement (FTA) with UAE is nearing conclusion, negotiations with Australia for an interim deal are at an advanced stage. Apart from that, talks with Israel are also going on.

Apart from that a comprehensive dialogue with South Korea is being fast tracked and talks have been initiated to address concerns arising out of the previous free trade agreement between the both nations, the minister said, urging the industry leaders to become proactive in giving inputs to the government, especially in arenas like FTA negotiations.

He also asked the industry to use a single window for business processes and approvals to the maximum extent possible and asked them to give suggestions and inputs for further decriminalization of rules and reduction of compliance burdens wherever feasible.