SME sector expecting aid in next package: PHDCCI

Industry is expecting specific measures in the next stimulus package for the small and medium enterprise (SME), which is fearing large-scale layoffs if the current worldwide economic slowdown continues, PHDCCI said.

"Industry watchers are of the opinion that the next stimulus package for pepping up the economy will include some targeted measures for the SME sector," industry body PHDCCI said.

The government might announce a second set of stimulus package this week, Commerce and Industry Minister Kamal Nath had said on December 11.

SMEs associations in representations to the Ministry of Micro, Small and Medium Enterprise (MSME) had expressed fear of large-scale job losses, if the present economic scenario continued. Over 42 million people are employed in the SME sector in the country.

The government on December 7 had announced several steps, including extending guarantee cover under Credit Guarantee Scheme on loans from Rs 50 lakh to Rs 1 crore and reducing the lock-in period for loans covered under the scheme from 24 months to 18 months for the micro, small and medium enterprises, besides sops on export credit for the sector.

A delegation of industry associations including PHDCCI had recently met Prime Minister Manmohan Singh and recommended suggestions for the betterment of the medium and small enterprises.

"The Prime Minister was receptive to the suggestions and assured that the government would address the problems of MSE sector in the right perspective," the chamber said in a statement.