During the Corona period, the biggest hit has been on micro, small and medium industries, which are facing cash crisis due to loss of production and sales and lack of debt. Similar picture of small industries was seen in Bulandshahar Road Industrial Area of Ghaziabad. The industries are hopeful that in the budget 2021, the government will give an incentive package and they will provide easy loans.
Here the production assembly line of the industrial manufacturing unit produces state-of-the-art automated systems and products such as sensors-driven automatic gates, doors. NDTV India visited this factory for the first time during the Corona crisis on 29 May. In the last few months, production has increased here as well as the number of workers. But factory owner Sanjeev Sachdev says that he still has to face many kinds of crises and challenges in running the business. Sanjeev Sachdev, MD, Toshi Automatic Systems, said that steel prices have increased by 25% -30% today. If the price of raw materials goes up by 30% then where will the industry go.
On the question of financial stimulus package in the budget 2021, Sachdev said that this will help the MSME sector, which is currently facing cash crunch. Banks are still not as open as they should be. Banks are delaying lending, due to which the crisis of liquidity is increasing day by day. The Union of Small and Small Scale Industries believes that today there are around 1.25 to 15 million MSME units in the country, which are facing many types of financial crisis.
Anil Bhardwaj, general secretary of the Small Small Industries Association, said that we estimate that there are about one today. Crores are small and small scale units which are facing financial crisis. Even now banks and financial institutions are not giving them loans as per the need. Worker working in Bulandshahr Road Industrial Area says that he has suffered for several months. Now the Finance Minister should declare jobs and special relief for unemployed workers in Budget 2021. Initiatives should be taken for workers suffering loss from lockdown.
Today the biggest crisis facing small and small scale industries is cash. Banks and financial institutions are not providing them as much credit as they need. He wants the Finance Minister to pay attention to this in the budget. With this, the possibility of economic growth in the entire sector can be restored and the crisis is overcome.