Budget 2022 – Medium companies should not end anywhere! This time there are big expectations from the budget

Manesar’s Manmohan is a third generation businessman. His family shifted to Manesar in 1997. The units set up by him in Manesar are counted among the oldest medium-sized units in the area. There was a lockdown in March 2020 and the work came to a standstill. Will this time budget be able to fulfill the dreams of medium industries?

Manesar’s Manmohan is a third generation businessman. His family shifted to Manesar in 1997. The units set up by them in Manesar are considered to be the oldest in the area. medium sized units ,MSMEManmohan is in the business of home furnishing products and expensive designer clothes. covid (covid 19About 150 people of Manmohan Singh before job ,Jobs) were giving. The number of people with direct employment was close to 70-80 who worked in contract or supply, but when the work went wrong, the number of employees also came down to 80.

Outsourcing has stoppedTheir home furnishing products go to Europe and America. There was a worldwide lockdown, so exports also stopped. When the situation improved a little, Manmohan’s work also started getting back on track. Manmohan’s family, who had been doing business for three generations, suffered the shock of Kovid and saved the business.

But the fabric of business deteriorated. Restarted the unit. However, the employment could not be returned. Manmohan’s company is one of the few companies in the industrial scene of India. The government’s latest quarterly employment survey shows that about 92 percent of companies in India have less than 100 employees. Of these, 70 percent have less than 40 employees and the maximum is in the services sector.

Entrepreneurs like Manmohan are only four per cent where 100-200 employees get work. Units with 200 to 500 employees are only 2.8 per cent and companies with more than 500 employees account for only 1.4 per cent.

A McKenzie study shows that in India, there are only 1500 companies per trillion dollars of GDP, which can be called as a medium-sized industry (turnover from 4 to 200 million dollars). This number is almost half that of India’s competing economies. Usually only a medium firm can become a big firm. In India’s competitive economies, the number of medium companies is 1.6 times more than that of large companies.

Manmohan may have managed to stay in business and today, his ability to create jobs has been shattered. Even in medium companies, Kovid had a very bad effect on an undertaking with 200 employees. If we talk about Manesar itself, before Kovid, about 2 lakh people were getting employment in different units there. Despite the improvement in the situation, today this figure is between 1.25 to 1.5 lakh. Manmohan says that if Kovid had not come, then the number of employees here would have been above three lakhs.

what did you get from the budget

Manmohan says that the times have become very challenging. For small units, it is better to survive but the problem of medium companies is different. They have the option to move forward, have the power to expand, but due to the shock of Kovid, they have started losing a large part of the market. The dual challenge is that the big domestic companies are capturing the market by fast acquisition and secondly due to cheap imports, distributors are directly importing goods from outside.

The last budget gave the help of cheap loans to small units and tax concessions to large units. Medium companies which give maximum employment. If they had got any direct help, then perhaps there would not have been so much unemployment. Manmohan says that governments in Europe had given grants to medium companies to save jobs. It should have happened in India too.

Manmohan’s son, who came from abroad, is now in favor of automatic machines. For which a loan will be available from the bank and workers will not be needed.

it’s just a dream

Manmohan says that why the government does not give grants to the medium units. If today the government gives some money to these units as a grant, then… jobs will be available, businesses will run and the government will also get many times more tax.

His experience with regard to bank loans is mixed. Manmohan says that it is now difficult for banks to agree on the business future amid Kovid. If the bank does not understand, then the cost of the loan increases greatly.

Manmohan says that their work is going on but why the medium companies do not get the benefit of the bankruptcy law.. Why are it only for big companies.

Kovid has pushed back Manmohan’s business by five years. Big companies have now got more power in their hands…they have increased the prices of raw materials arbitrarily and it has sucked the entire capital of small businessmen.

Business cost is a big problem for medium companies. After Kovid, the cost of raw materials increased exponentially, due to which further business plans have started breaking. Whatever the government does, just make the raw materials cheaper… The prices of raw materials have increased by 50 to 100%. This increase is not completely justified.

The big companies have made up for their losses… while the struggle has arisen for the medium units to survive.

Manmohan’s dream is that the raw material becomes cheap, and he will get some tax concession… He will also give employment and increase the production.

read this also-Budget 2022: What are the expectations of the self-employed from the budget? Will his dreams come true this time?

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