In a scathing attack on the Union Government, Congress President Mallikarjun Kharge raised concerns about the fate of Micro, Small, and Medium Enterprises (MSMEs) under the Modi regime.
Kharge asserted that during the tenure of the Modi government, a staggering 2.5 crore MSMEs were shut down, while the Congress-led UPA government witnessed an increase of 1.3 crore MSMEs.
This revelation comes amidst ongoing debates surrounding the state of India's economy and the government's policies aimed at supporting small businesses.
Kharge highlighted the impact of the redefined criteria for classifying MSMEs in 2020, which aimed to be more inclusive. However, despite these efforts, the MSME sector suffered significant setbacks, raising questions about the effectiveness of government policies in fostering its growth.
The Congress President questioned the Modi government's economic strategies, pointing to initiatives like demonetization, the implementation of the Goods and Services Tax (GST), and the COVID-19 lockdowns, which he argued have adversely affected the MSME sector.
Kharge emphasized the need for accountability regarding the utilization of funds allocated for MSMEs, particularly the special economic package announced by Prime Minister Modi in May 2020.
Citing concerning statistics, Kharge revealed that a significant portion of the funds earmarked for MSMEs remained underutilized. For instance, out of the Rs 20,000 crore allocated for the Credit Guarantee Scheme for Subordinate Debt, only a fraction was disbursed, raising doubts about the government's commitment to supporting small businesses.
Similarly, the utilization of funds under schemes like the Emergency Credit Line Guarantee Scheme (ECLGS) and the Self Reliant India (SRI) Fund came under scrutiny, with Kharge highlighting discrepancies in fund allocation and utilization.
Kharge also criticized the effectiveness of the PM MUDRA Scheme, which aims to provide financial assistance to MSMEs. He pointed out that despite the scheme's lofty objectives, the average size of loans disbursed under PM MUDRA remained abysmally low, signaling systemic issues within the program.
In conclusion, Kharge lamented the devastating impact of what he termed "MODINOMICS" on the MSME sector, emphasizing the Congress party's commitment to reviving the growth engine of India.
He pledged to prioritize the welfare of MSMEs and ensure equitable opportunities for small businesses, promising a vision of "NYAY" (justice) for the MSME sector under Congress leadership.
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