TiE Chapters request bridging of MSMEs and Start-ups to facilitate Aatma Nirbhar benefits
TiE Chapter presidents, in unison on behalf of the Startup Ecosystem across India, wrote to Minister of Commerce Nithin Gadkari to bridge MSMEs and start-ups to enable benefits of Aatma Nirbhar for the start-ups.
In the letter they said, "we are all committed to the creation of the right environment for the growth of entrepreneurship and employment within India. Today 39,000 plus start-ups across India are instrumental in building a strong ecosystem conducive for the growth of the economy, driving sustainability, and facilitating rapid expansion of employment opportunities across various skill sets."
They claimed that the Covid-19 virus has wreaked havoc across the start-up ecosystem with 60% of entities facing financial ruin in a matter of months. They added that the start-up companies across the nation are inherently young, less resilient, and most vulnerable.
They further added many of these start-ups face likely devastation during this extraordinary economic downturn. Hence they requested the Minister for his urgent intervention to ensure India’s start-up ecosystem survives this crisis and emerges as a pillar of growth, employment and innovation.
The Atmanirbhar Abhiyan package of Rs 20 lakh Crore, as announced by the Finance Minister, Nirmala Sitharaman, has a slew of measures to help the MSME sector in India. This includes a Rs 3 lakh-crore loan guarantee scheme, Rs 20,000 crore subordinated debt scheme, a Fund of Funds for investments into MSMEs, preferential procurement for tenders below Rs 250 crore, amongst other measures. They said these measures bring significant relief to the MSME sector and the change in the definition of the term “MSME” and the addition of revenue thresholds as criteria will help broaden the ambit of MSMEs and allow for greater numbers to register.
They also added that start-ups, many of whom qualify as MSMEs, have worked diligently to help India’s MSME sector go digital. They claimed they have created bespoke software, apps and tools to help MSME’s workflow, procurement, transaction management and financing. They urged that in this new COVID-19 world, the need to have a strong digital backbone will be imperative for Indian MSMEs to succeed.
They added that start-ups, who have not found mention in the Atmanirbhar Abhiyan package, will require the support. Hence they requested a bridge between MSMEs and Startups be created such that Indian start-ups registered with DPIIT can automatically be assigned “Udyog Aadhar MSME certificates” allowing them to qualify for the Atmanirbhar Abhiyan benefits.
They claimed that recent changes in definitions have greatly aligned the definition of MSMEs and start-ups and this bridge will help the virtuous cycle of Indian MSMEs and start-ups, bringing greater economic prosperity to India to accelerate.
In the letter they said, "we are all committed to the creation of the right environment for the growth of entrepreneurship and employment within India. Today 39,000 plus start-ups across India are instrumental in building a strong ecosystem conducive for the growth of the economy, driving sustainability, and facilitating rapid expansion of employment opportunities across various skill sets."
They claimed that the Covid-19 virus has wreaked havoc across the start-up ecosystem with 60% of entities facing financial ruin in a matter of months. They added that the start-up companies across the nation are inherently young, less resilient, and most vulnerable.
They further added many of these start-ups face likely devastation during this extraordinary economic downturn. Hence they requested the Minister for his urgent intervention to ensure India’s start-up ecosystem survives this crisis and emerges as a pillar of growth, employment and innovation.
The Atmanirbhar Abhiyan package of Rs 20 lakh Crore, as announced by the Finance Minister, Nirmala Sitharaman, has a slew of measures to help the MSME sector in India. This includes a Rs 3 lakh-crore loan guarantee scheme, Rs 20,000 crore subordinated debt scheme, a Fund of Funds for investments into MSMEs, preferential procurement for tenders below Rs 250 crore, amongst other measures. They said these measures bring significant relief to the MSME sector and the change in the definition of the term “MSME” and the addition of revenue thresholds as criteria will help broaden the ambit of MSMEs and allow for greater numbers to register.
They also added that start-ups, many of whom qualify as MSMEs, have worked diligently to help India’s MSME sector go digital. They claimed they have created bespoke software, apps and tools to help MSME’s workflow, procurement, transaction management and financing. They urged that in this new COVID-19 world, the need to have a strong digital backbone will be imperative for Indian MSMEs to succeed.
They added that start-ups, who have not found mention in the Atmanirbhar Abhiyan package, will require the support. Hence they requested a bridge between MSMEs and Startups be created such that Indian start-ups registered with DPIIT can automatically be assigned “Udyog Aadhar MSME certificates” allowing them to qualify for the Atmanirbhar Abhiyan benefits.
They claimed that recent changes in definitions have greatly aligned the definition of MSMEs and start-ups and this bridge will help the virtuous cycle of Indian MSMEs and start-ups, bringing greater economic prosperity to India to accelerate.