Member of Parliament Su. Venkatesan has formally written to Union Finance Minister Nirmala Sitaraman, advocating for relief measures for Micro, Small, and Medium Enterprises (MSMEs). The appeal stems from the significant distress these businesses are reportedly facing due to additional import tariffs levied by the United States. Venkatesan highlighted concerns that this situation could lead to an increase in Non-Performing Assets (NPAs) as MSMEs struggle to meet their bank dues.
The lawmaker emphasized the critical role of MSMEs, which contribute approximately 45% of India's total exports. Specific sectors identified as being particularly vulnerable include textiles, seafood, and gems and jewellery, which collectively account for about 25% of India's exports to the U.S. and feature over a 70% MSME share. The chemicals sector, with MSMEs contributing around 40% of its exports, is also under strain. Venkatesan noted the severe impact in Tamil Nadu, a key textile-exporting region largely dependent on MSMEs, where units are experiencing stock accumulation and delayed deliveries from international customers.
The letter urged Minister Sitaraman to advise the Reserve Bank of India (RBI) to relax the norms for classifying MSME dues as NPAs, providing crucial financial respite during the current economic challenges.
Source: https://www.thehindu.com/news/national/tamil-nadu/mp-su-venkatesan-seeks-relief-for-msmes-hit-by-us-tariffs-urges-rbi-to-ease-npa-norms/article70715054.ece
