Fiscal package for small enterprises on cards: minister

November 19th, 2008 - 9:45 pm ICT by IANS  

New Delhi, Nov 19 (IANS) The government will provide financial assistance to small and medium enterprises (SMEs) at affordable interest rates to stimulate growth in the sector, a union minister said here Wednesday. Minister of State for Industry Ashwani Kumar, after meeting representatives of industry associations, said the government would consider all suggestions they have made and, if required, would intervene at the policy level also.

“The SME sector employees 95 percent labourers of the organised sector. The sector will be given maximum support. We will have an affordable credit fiscal package for the SMEs,” Kumar said.

About 40 representatives from 21 industry organisations met the minister and demanded realignment of duties and basic fiscal incentives, besides further cuts in key interest rates.

“Their (industry leaders) suggestions would be scrutinised and will be brought before the prime minister-constituted apex group, which is looking into the grievances of the Indian industry,” Kumar said.

The government would respond to the issues raised by them in the next 15 days, Kumar said.

The industry also asked the government to look into the anti-dumping policy. “We would be making the policy stricter. India cannot afford to lose on this,” said the minister.

Countries like China continue to use India as their dumping ground, selling their products at low prices, he added.

He added that inflation would moderate “sharply” soon.

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