(MENAFN- KNN India)
New Delhi, Jan 4 (KNN)
The Federation of Indian Micro and Small & Medium Enterprises (FISME) has called for immediate government intervention following the recent hsbc India manufacturing Purchasing Manager's index (PMI) report, which revealed manufacturing activity has hit a 12-month low.
The industry body presented its concerns during a meeting with Chief Economic Advisor V Nageswaran, where it outlined several key recommendations to address the impact of increasing protectionist measures on the sector.
Central to FISME's proposals is the recommendation for comprehensive analysis of quality control orders (QCOs), anti-dumping measures, and safeguard duties by prestigious institutions such as the Indian Institutes of Management or the Indian Institute of Foreign Trade.
The federation emphasised that such assessment should precede any new implementation of tariff or non-tariff barriers, with explicit involvement of MSME stakeholders and user industries in the decision-making process.
They also advocated for the formation of a group of ministers to oversee these measures.
The industry body expressed particular concern over recent QCOs in the steel sector, which have introduced 151 rigorous standards that effectively restrict imports.
According to FISME, these restrictions have enabled domestic producers to implement substantial price increases.
The organisation noted that similar constraints are being extended to other essential materials, including copper, aluminium, and polymers, potentially compromising MSMEs' ability to access cost-competitive raw materials.
In a memorandum submitted to the government, FISME warned of far-reaching consequences for employment across multiple sectors.
"The decline in MSME competitiveness due to higher input costs and reduced market access will lead to job losses within the sector," the memorandum stated, adding that these effects would cascade into related industries such as transportation, logistics, and retail.
The organisation cautioned that diminished competitiveness in the MSME sector could significantly impair India's overall employment growth trajectory.
(KNN Bureau)
MENAFN04012025000155011030ID1109054088
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.