- Arun Popli, Chairman of Okhla Chamber of Industries vocals for an immediate relief package for businesses
- He asks the Indian Government to adopt the UK's business support model
- As a head start, Popli urges that the government should give MSMEs loans with slashed interest rates for a period of 2 years
India is in lockdown since 25th March 2020 due to the COVID19 outbreak in the country, this lockdown was supposed to last for 21 days, and it is now extended till 3rd May 2020. This lockdown extension is resulting in huge losses for the small scale industries and other businesses. Arun Popli, Chairman of Okhla Chamber of Industries, from one of the oldest industrial belt from the capital city of India, New Delhi is vocal about the challenges each one of these businesses are facing and looking out to Governments for immediate support.
We spoke to Arun Popli, whose video become viral during the lockdown and bringing you the excerpts from the discussion. Without earning revenue, no cash flow, every entrepreneur from the small and medium scale sectors are finding it difficult to manage the day to day expenses, pay the salaries to their strength – employees, and facing uncertainty.
If the government doesn’t work on any strategy to give small scale businesses and industries a relief package then many industries and small scale businesses will be bankrupt soon and this can lead to recession because the MSMEs (Micro, Small and Medium Enterprises) contributes 25% of the national GDP.
He urges the Government of India to promptly work on packages to save these small scale businesses. He adds, “If these businesses are not able to fire up again, then many other businesses like tourism, hospitality, entertainment, retail, hotel, etc. will also be affected, because people will not have money to spend on such luxuries”.
Mr. Popli also mentioned several challenges industry owners are facing at this juncture. They have been paying out the salaries on time, and the three month moratorium period from the bank for their loans by RBI is a welcome move, but charging compound interest for these 3 months, is only going to add burden to their entrepreneurship.
He informed that there are cases where some manufacturers after exporting goods, are not able to receive payments due to the global pandemic situation and lockdown in several countries. Without cash flow, it will be very difficult for these entrepreneurs to run business and pay salaries to the workers.
UK Government has granted loans and tax relief to help the business to get back on track. For the last four weeks, the whole business network in India is on hold. He adds, “MSMEs are looking out to State and Central Governments to announce stimulus packages which can make a real difference in the economy and boost the morale”. Mr. Popli urges that the government should give MSMEs loans with slashed interest rates for a period of 2 years. There should be a relief package for MSME for paying out salaries of their employees. Relief in taxes and electricity bills should be granted.
It's estimated that more than 70 million employees work for MSMEs in the country, and as per Arun, the most affected businesses during this lockdown are going to be the ones whose annual turnover is between 5 crore to 50 crore rupees.
Arun Popli has written to the Chief Minister of Delhi as well as the Prime Minister of India to bring relief measures to MSMEs. “MSMEs are not looking for long term relief, and they only need a head start of 2 years to bring their businesses back into its regular path again. This is going to boost the GDP, in turn, will ensure business expansion and higher revenue to Government from GST (Goods and service tax)”, tells Mr. Popli.
Arun Popli told that Modi Government is having a business-friendly approach and a big advocate of “Ease of doing business” in the country. “Let’s hope this government will follow their ideology and help the small scale industries and businesses to function properly again and also save millions of jobs”, concludes Arun Popli.
You can reach Arun Popli at okhlachamberofindustries@gmail.com
