COIMBATORE: Union Minister for Micro, Small and Medium Enterprises (MSME) Jitan Ram Manjhi on Wednesday sought to reassure industry stakeholders by stating that the recent spike in aluminium and copper prices is temporary and market stability is expected soon.
Addressing the media in Coimbatore, the minister said the surge in key raw material prices has put pressure on small manufacturers but expressed confidence that rates would normalise in the near term.
“In Coimbatore, officials will review the ground situation and consider forming a monitoring committee to track fluctuations in raw material prices. The centre will extend all necessary support to ensure that products manufactured here gain stronger access to international markets,” he said.
On industry demands to reduce the Goods and Services Tax (GST) for job-working units from 18 per cent to 5 per cent, Manjhi said the request would be examined in detail. He added that a proposal to introduce an MSME credit card for sector workers, on the lines of schemes available to farmers, would be considered after consultations with officials.
The minister said the centre has been prioritising the upliftment of economically weaker sections and promoting micro-entrepreneurship in states including Tamil Nadu, Bihar, Uttar Pradesh and West Bengal.
Describing MSMEs as the backbone of the Indian economy, Manjhi underscored the sector’s decisive contribution to growth, manufacturing and exports.
“The MSME sector accounts for 33.31 per cent of India’s GDP, 36 per cent of total manufacturing output and 46 per cent of overall exports. In a global environment where a nation’s strength is measured by its export performance, MSMEs form the real backbone of the economy,” he said.