ACMA welcome economic measures announced by FM Sitharaman for MSMEs

Auto components manufacturers' body ACMA on Wednesday welcomed the measures announced by Finance Minister Nirmala Sitharaman, saying it will give a boost to MSME sector, which has been under severe stress due to the lockdown.

The Automotive Component Manufacturers Association Of India (ACMA) also reiterated its long pending demand of uniform GST rate of 18 per cent on all vehicles and auto components.

"Change in definition of MSMEs has been a long-standing recommendation of ACMA. With this new classification, a significant number of ACMA members stand to benefit as the sector is dominated by smaller Enterprises," ACMA President Deepak Jain said in a statement.

That apart, infusion of liquidity through collateral-free automatic loans and subordinate debt scheme will ease the severe challenge of working capital being faced by the sector, he added.

Jain said ACMA is also hopeful that the government will soon announce a package for demand generation for automotive sector.

"A uniform GST rate of 18 per cent on all vehicles and auto components, backed by an incentive-based scrappage policy would bring the automotive industry back on track," he said.

Jain further said, "That apart, we look forward to support from the government for payment of salaries of workmen and contractual labour during the lockdown period.