
Burning MSMEs in India — Not Just the Middle East alone..
The ongoing geopolitical tensions involving the US, Israel and Iran have triggered supply disruptions and sharp increases in energy prices. This is severely impacting MSMEs across India.
LPG gas and furnace oil are the first and most essential inputs for operations—cutting, heating, heat treatment, painting processes, and even cooking in factory canteens.
Due to shortages and rising costs:
• Many MSME units are forced to slow down or shut down temporarily..
Steep increase in raw materials, energy cost,
• Migrant workers are leaving due no canteen, no food.
This Alarming situation needs timely intervention from both Central and State.... Governments
AIPC MSME Verticle recommends Possible relief measures could include:
• Monitoring and controlling abnormal raw material and energy price spikes
• Extension of contract delivery timelines without LD (Liquidated Damages)
• Reduction or waiver of SD (Security Deposit) and PBG (Performance Bank Guarantee) requirements
• Reduction in bank interest rates or interest subvention for MSMEs
• Extension of export timelines under ECGC support etc.
SUDHAKAR SUNDARAVEL
National Head-MSME Verticle
All India Professional Congress.
#MSME #IndianManufacturing #EnergyCosts #RawMaterials #PolicySupport

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