Chandigarh, 24 October, 2024: Punjab Chief Minister Bhagwant Mann urged NITI Aayog Vice-Chairman Suman Bery to provide subsidies and incentives for Punjab that match those offered to hill states, citing the state’s unique challenges as a border region.
During their first interaction, Mann said that Punjab holds substantial potential in the micro, small, and medium enterprises (MSME) sector and called for collaborative efforts to unlock this opportunity.
Local business representatives participated in the discussion, sharing their struggles, including high transportation costs from factories to ports in Gujarat and Maharashtra, a lack of freight equalization subsidies, and the high, inconsistent cost of power.
Gautam Kapoor, Chairman of the Northern Exporters Forum, raised the point of the resource challenges facing Punjab’s MSMEs. “While we have the Export Promotion Capital Goods (EPCG) Scheme for new machinery, there should also be a similar scheme for old machinery, as many MSMEs rely on it for production,” he stated. Kapoor also advocated for a common facility center for hand tools.
Mann described MSMEs as the backbone of Punjab’s economy, stressing that a partnership between the government and these enterprises is essential for the state’s exponential growth. He pointed out that sectors such as tractors, auto components, bicycles, hosiery, agro-processing, and agricultural implements contribute significantly to Punjab’s exports. Bery acknowledged the funding difficulties that MSMEs face, particularly in securing resources for expansion and innovation. He also noted the persistent shortage of skilled labor in crucial sectors like textiles and hand tools.
“Through focused sessions with industry stakeholders, our aim is to delve into the potential of sectors such as hand tools, textiles, apparel, sports goods, and leather,” Bery said.
“Together, we will identify critical growth areas, necessary policy support measures, and capacity-building initiatives essential for MSMEs.”
Sanjeet Singh, Senior Adviser at NITI Aayog, reinforced the importance of collaboration between industry stakeholders and policymakers, stating, “Our government is committed to providing the necessary support.”
