FICCI : Industry's Voice for Policy Change

Azim Premji University, Federation of Indian Chambers of Commerce and Industry (FICCI) and Tata Institute of Social Sciences, Mumbai (TISS) on Saturday introduced a brand new coverage proposal for creating an Udyog Sahayak Enterprises Network (USENET) for employment generation and scale-up in the MSME sector.

The report proposes the creation of a assist system that can enhance Ease of Doing Business for largely casual micro and small entrepreneurs. Udyog Sahayak Enterprises will take providers reminiscent of digitisation and formalisation, availing of presidency loans, subsidies or different advantages, guaranteeing compliance with native, regional, and nationwide regulation, aiding partnership with digital advertising and marketing platforms and digital fee platforms, to the micro-entrepreneurs at their doorstep, in line with a press launch.

The report estimates that by enabling scale-up, USENET can help in the creation of an extra 1 crore (10.3 million) jobs over 5 years going as much as almost 6 crores (56.9 million) over 10 years.

Anurag Behar, Vice-Chancellor of Azim Premji University, underlined the function performed by automation in weakening the connection between progress in value-added and progress in jobs. He noticed that “this endeavor is truly remarkable as you are putting a possible solution out there, not only identifying a problem”.

TISS Director Prof Sahlini Bharat famous the resonance with TISS’ mission of fostering socially related entrepreneurship and known as the proposal “simple in approach but lofty in goal.” She additionally noticed that the concept is a wonderful instance of supporting expertise for society. Finally she famous that such a system can even assist micro-enterprises emerge from the shock of Covid-19 which has hit this sector significantly arduous.

Presenting the coverage proposal, Chairman FICCI Telangana State Council and co-author of the report, T. Muralidharan underlined the issue of “jobless growth” and pointed out that we’re in hazard of shedding our demographic dividend. He known as for giving micro-entrepreneurs their due recognition in the making of the nation.

Report co-author and college member at Azim Premji University, Amit Basole, famous that “rather than creating more nano-entrepreneurs, we need to help existing MSEs to grow in size. We can do this by creating a support system which enables them to go digital, avail of government schemes, adopt new technologies, and increase productivity. This will create millions of new jobs.”

Commenting on the coverage proposal, Meghaben Desai of the Self Employed Women’s Association famous that the ability of the casual sector must be recognised and highlighted SEWA’s work on bringing farmers to digital platforms.

Mekin Maheshwari, co-founder of the Global Alliance for Mass Entrepreneurship, advisable that USENET might additionally incorporate a peer-to-peer studying element in addition to service provision. He additionally emphasised the scaling up and productiveness will increase had been the important thing, and easy technological enhancements might assist in this regard.

Dilip Chenoy, Secretary General of FICCI, recommended the authors on the collaborative effort and known as for a momentum to be created to take the concept ahead. He noticed that the quantity of funding known as for the proposal per MSE was lower than what state governments usually spend on skilling a person.

ET Auto | Jan 24, 2021

Policy proposal for employment generation, scale-up in MSME sector

A new policy proposal for creating a Udyog Sahayak Enterprises Network (USENET) was released on Saturday. The proposal is the result of a collaboration between Azim Premji University, Federation of Indian Chambers of Commerce and Industry, and Tata Institute of Social Sciences, Mumbai.

The report proposes the creation of a support system that will improve the Ease of Doing Business for largely informal micro and small entrepreneurs. Udyog Sahayak Enterprises will take services such as digitisation and formalisation, availing of government loans, subsidies or other benefits, ensuring compliance with local, regional and national regulations, aiding partnership with digital marketing platforms and digital payment platforms, to the micro-entrepreneurs at their doorstep.

The report estimates that by enabling scale-up, USENET can aid in the creation of an additional 1 crore (10.3 million) jobs over five years going up to nearly 6 crores (56.9 million) over 10 years. Based on value-added per worker observed in this sector and assuming a 12 percent nominal rate of growth in GVA, these jobs represent an additional economic value of Rs 2,16,000 crores at the end of 5 years and over 19 lakh crores at the end of 10 years.

Inaugurating the event, Anurag Behar, Vice-Chancellor of Azim Premji University, underlined the role played by automation in weakening the connection between growth in value-added and growth in jobs. He observed that "this endeavour is truly remarkable as you are putting a possible solution out there, not only identifying a problem."

TISS Director, Prof. Sahlini Bharat, noted the resonance with TISS' mission of fostering socially relevant entrepreneurship and called the proposal "simple in approach but lofty in goal." She also observed that the idea is an excellent example of supporting technology for society.

Presenting the policy proposal, Chairman FICCI Telangana State Council and co-author of the report, T. Muralidharan underlined the problem of "jobless growth" and pointed out that we are in danger of losing our demographic dividend. He called for giving micro-entrepreneurs their due recognition in the making of the nation.

Business Today | Jan 24, 2021

FICCI, Azim Premji University recommend 18 lakh Udyog Sahayak Enterprises network to assist MSEs

An industry-academia collaboration has submitted a new policy proposal to Narendra Modi government to create Udyog Sahayak Enterprises Network (USENET) that provides a bouquet of services to micro and small enterprises (MSEs) of the country. The scheme envisages establishment of around 18 lakh Udyog Sahayak Enterprises (USEs) in three phases to service over 60 million MSEs over a period of ten years.

The report, prepared through a collaboration between Azim Premji University, Federation of Indian Chambers of Commerce and Industry (FICCI), and Tata Institute of Social Sciences, Mumbai, proposes the creation of a support system that will improve Ease of Doing Business for largely informal micro and small entrepreneurs. Each single person manned Udyog Sahayak Enterprise (USE) will comprise of a mobile unit (motor bike) and a small home office with basic infrastructure like computer/laptop, printer, scanner, web camera, broadband connectivity and suitable power backup for uninterrupted delivery of services.

Udyog Sahayak Entrepreneurs will be educated youth with 12th pass or graduate degrees who will be trained by the existing skilling ecosystem of the Skill Development and Entrepreneurship Ministry. Thus, the programme creates sustainable livelihoods for 18 lakh educated youth, in addition to enabling MSE growth and indirect job creation and consequent economic growth, the report said.

The report proposes a one time government subsidy directly to the infrastructure suppliers. "Each USE will require a capex of Rs 1.14 lakh of which 50 per cent is a grant from of GoI. 80 per cent of working capital requirement will come in the form of a MUDRA loan," the report said.

The services offered to the micro-entrepreneurs at their doorstep will include digitisation and formalisation, availing of government loans, subsidies or other benefits, ensuring compliance with local, regional, and national regulation, aiding partnership with digital marketing platforms and digital payment platforms.

The authors estimate that by enabling scale-up, USENET can aid in the creation of an additional 1 crore (10.3 million) jobs over five years going up to nearly 6 crore (56.9 million) over 10 years. Based on value-added per worker observed in this sector and assuming a 12 per cent nominal rate of growth in GVA, these jobs represent an additional economic value of Rs 2.16 lakh crore at the end of 5 years and over Rs 19 lakh crore at the end of 10 years, the report said.

Presenting the policy proposal, T Muralidharan, Chairman of FICCI Telangana State Council and co-author of the report, underlined the problem of "jobless growth" and pointed out that we are in danger of losing our demographic dividend. He called for giving micro-entrepreneurs their due recognition in the making of the nation.

Amit Basole, report co-author and faculty member at Azim Premji University, noted that "rather than creating more nano-entrepreneurs, we need to help existing MSEs to grow in size. We can do this by creating a support system which enables them to go digital, avail of government schemes, adopt new technologies, and increase productivity. This will create millions of new jobs."

This proposal was developed for the Working Group of Ministers (WGoM) on Employment and Skill Generation, convened by MoS Home Affairs of Government of India in October 2020. It has been submitted to the Prime Minister along with other proposals developed by the group.

The Pioneer | Jan 24, 2021

Policy proposal for employment generation, scale-up in MSME sector

A new policy proposal for creating an Udyog Sahayak Enterprises Network (USENET) was released on Saturday. The proposal is the result of a collaboration between Azim Premji University, Federation of Indian Chambers of Commerce and Industry, and Tata Institute of Social Sciences, Mumbai.

The report proposes the creation of a support system that will improve Ease of Doing Business for largely informal micro and small entrepreneurs. Udyog Sahayak Enterprises will take services such as digitisation and formalisation, availing of government loans, subsidies or other benefits, ensuring compliance with local, regional and national regulations, aiding partnership with digital marketing platforms and digital payment platforms, to the micro-entrepreneurs at their doorstep.

The report estimates that by enabling scale-up, USENET can aid in the creation of an additional 1 crore (10.3 million) jobs over five years going up to nearly 6 crores (56.9 million) over 10 years. Based on value-added per worker observed in this sector and assuming a 12 per cent nominal rate of growth in GVA, these jobs represent an additional economic value of Rs 2,16,000 crores at the end of 5 years and over 19 lakh crores at the end of 10 years.

Inaugurating the event, Anurag Behar, Vice-Chancellor of Azim Premji University, underlined the role played by automation in weakening the connection between growth in value-added and growth in jobs.

He observed that “this endeavour is truly remarkable as you are putting a possible solution out there, not only identifying a problem.”

TISS Director, Prof. Sahlini Bharat, noted the resonance with TISS’ mission of fostering socially relevant entrepreneurship and called the proposal “simple in approach but lofty in goal.” She also observed that the idea is an excellent example of supporting technology for society.

Presenting the policy proposal, Chairman FICCI Telangana State Council and co-author of the report, T. Muralidharan underlined the problem of “jobless growth” and pointed out that we are in danger of losing our demographic dividend. He called for giving micro-entrepreneurs their due recognition in the making of the nation.

Zee Business | Jan 24, 2021

Policy proposal for employment generation, scale-up in MSME sector

A new policy proposal for creating an Udyog Sahayak Enterprises Network (USENET) was released on Saturday. The proposal is the result of a collaboration between Azim Premji University, Federation of Indian Chambers of Commerce and Industry, and Tata Institute of Social Sciences, Mumbai.

The report proposes the creation of a support system that will improve Ease of Doing Business for largely informal micro and small entrepreneurs. Udyog Sahayak Enterprises will take services such as digitisation and formalisation, availing of government loans, subsidies or other benefits, ensuring compliance with local, regional and national regulations, aiding partnership with digital marketing platforms and digital payment platforms, to the micro-entrepreneurs at their doorstep.

The report estimates that by enabling scale-up, USENET can aid in the creation of an additional 1 crore (10.3 million) jobs over five years going up to nearly 6 crores (56.9 million) over 10 years. Based on value-added per worker observed in this sector and assuming a 12 per cent nominal rate of growth in GVA, these jobs represent an additional economic value of Rs 2,16,000 crores at the end of 5 years and over 19 lakh crores at the end of 10 years.

Inaugurating the event, Anurag Behar, Vice-Chancellor of Azim Premji University, underlined the role played by automation in weakening the connection between growth in value-added and growth in jobs. He observed that "this endeavour is truly remarkable as you are putting a possible solution out there, not only identifying a problem."

TISS Director, Prof. Sahlini Bharat, noted the resonance with TISS' mission of fostering socially relevant entrepreneurship and called the proposal "simple in approach but lofty in goal." She also observed that the idea is an excellent example of supporting technology for society.

Presenting the policy proposal, Chairman FICCI Telangana State Council and co-author of the report, T. Muralidharan underlined the problem of "jobless growth" and pointed out that we are in danger of losing our demographic dividend. He called for giving micro-entrepreneurs their due recognition in the making of the nation.

India News Republic | Jan 24, 2021

Policy proposals for job creation, scaling up the MSME sector

A new policy proposal for creating the Udyog Sahayak Enterprises Network (USENET) was released on Saturday. This proposal is the result of the collaboration of Azim Premji University, the Federation of Indian Chambers of Commerce and the Tata Institute of Social Sciences in Mumbai.

The report mainly proposes the creation of support systems that improve the business ease of informal micro and small entrepreneurs. Udyog Sahayak Enterprises uses services such as digitization and formalization, government loan access, subsidies and other perks to ensure compliance with regional, regional and national regulations, as well as digital marketing and payment platforms. We support partnerships with. Door step.

The report estimates that by enabling scale-up, USENET will create an additional 1 crore (10.3 million) jobs in 5 years, reaching nearly 6 crore (56.9 million) in 10 years. Based on the added value per worker observed in this sector, assuming a GVA nominal growth rate of 12%, these jobs will have an additional economic value of Rs. 216,000, Rs. 190,000 or more after five years. Represents. The end of 10 years.

At the start of the event, Anurag Behar, Vice President of Azim Premji University, emphasized the role of automation in weakening the link between value growth and employment growth. “This effort is truly remarkable, as it not only identifies the problem, but also offers possible solutions,” he said.

Professor Sahlini Bharat, director of TISS, noted the resonance with TISS’s mission to foster a socially relevant entrepreneurial spirit and described the proposal as “a simple approach but high goals.” She also said that this idea is a good example of supporting technology for society.

T. Muralidharan, chairman of the FICCI Terangana Legislature and co-author of the report, presented a policy proposal, highlighting the issue of “growth during unemployment” and pointing out the risk of losing demographic dividends. .. He called on micro-entrepreneurs to give legitimate recognition in nation-building.

Daily World | Jan 24, 2021

Policy proposal for employment generation, scale-up in MSME sector

A new policy proposal for creating an Udyog Sahayak Enterprises Network (USENET) was released on Saturday. The proposal is the result of a collaboration between Azim Premji University, Federation of Indian Chambers of Commerce and Industry, and Tata Institute of Social Sciences, Mumbai.

The report proposes the creation of a support system that will improve Ease of Doing Business for largely informal micro and small entrepreneurs. Udyog Sahayak Enterprises will take services such as digitisation and formalisation, availing of government loans, subsidies or other benefits, ensuring compliance with local, regional and national regulations, aiding partnership with digital marketing platforms and digital payment platforms, to the micro-entrepreneurs at their doorstep.

The report estimates that by enabling scale-up, USENET can aid in the creation of an additional 1 crore (10.3 million) jobs over five years going up to nearly 6 crores (56.9 million) over 10 years. Based on value-added per worker observed in this sector and assuming a 12 per cent nominal rate of growth in GVA, these jobs represent an additional economic value of Rs 2,16,000 crores at the end of 5 years and over 19 lakh crores at the end of 10 years.

Inaugurating the event, Anurag Behar, Vice-Chancellor of Azim Premji University, underlined the role played by automation in weakening the connection between growth in value-added and growth in jobs. He observed that "this endeavour is truly remarkable as you are putting a possible solution out there, not only identifying a problem."

TISS Director, Prof. Sahlini Bharat, noted the resonance with TISS' mission of fostering socially relevant entrepreneurship and called the proposal "simple in approach but lofty in goal." She also observed that the idea is an excellent example of supporting technology for society.

Presenting the policy proposal, Chairman FICCI Telangana State Council and co-author of the report, T. Muralidharan underlined the problem of "jobless growth" and pointed out that we are in danger of losing our demographic dividend. He called for giving micro-entrepreneurs their due recognition in the making of the nation.

The World News | Jan 23, 2021

Draft policy to help grow nano, micro enterprises

A new policy on the anvil, the Udyog Sahayak Enterprises Network (USENET), may give a major fillip to the growth-stunted nano and micro-enterprises in India’s informal sector.

The proposed framework, whose draft was jointly put together by the Azim Premji University, the Federation of Indian Chambers of Commerce and Industry (FICCI), and the Tata Institute of Social Sciences (TISS), is aimed at providing a slew of growth-driven services to over 62 million nano and micro-enterprises that currently employ over 100 million people.

By enabling scale-up, the draft claims, USENET can aid in the creation of an additional 10.3 million jobs over five years, going up to nearly 56.9 million jobs over 10 years. Each of these small enterprises currently has one to three employees, and if given a boost, they have the potential to grow and create a large number of jobs, says the draft.

If the value-added per worker can be computed, according to the draft, it could bring in a 12% nominal growth in GVA (gross asset value), amounting to an economic value of ₹2.16 lakh crore in five years and over ₹19 lakh crore at the end of 10 years.

The draft proposes the creation of a support system that will improve Ease of Doing Business for the largely informal nano, micro and small entrepreneurs. Udyog Sahayak Enterprises, to be set up across the country, will deliver services such as digitisation and formalisation; availing of government loans, subsidies or other benefits; ensuring compliance with local, regional and national regulation; and aiding partnership with digital marketing platforms and digital payment platforms to these enterprises.

T. Muralidharan, chairman, FICCI, Telangana State Council, and co-author of the report said, “Through USENET, we are trying to create a countrywide entrepreneurial network. The platform will give millions of nano and micro-enterprises, which are facing harassment and growth challenges, information on policies, schemes and credit options, and visibility to lenders and customers, thereby help them grow and go digital.”

Report co-author and faculty member at Azim Premji University, Amit Basole, noted that rather than creating more nano-entrepreneurs, the country has to help existing MSEs grow in size. “We can do this by creating a support system which enables them to go digital, avail of government schemes, adopt new technologies, and increase productivity. This will create millions of new jobs,” he said.

According to co-authors of the proposal, the draft is currently under review by the group of ministers and the PMO. The Union government is likely to sanction upto ₹5,000 crore to part-fund CAPEX to set up at least 19 lakh USENET centres. Each of these centres will be headed by a Udyog Sahayak, who will have a mandate to help and monitor the growth of 15 to 50 enterprises.

Punjab News Express | Jan 23, 2021

Policy proposal for employment generation, scale-up in MSME sector

A new policy proposal for creating an Udyog Sahayak Enterprises Network (USENET) was released on Saturday. The proposal is the result of a collaboration between Azim Premji University, Federation of Indian Chambers of Commerce and Industry, and Tata Institute of Social Sciences, Mumbai.

The report proposes the creation of a support system that will improve Ease of Doing Business for largely informal micro and small entrepreneurs. Udyog Sahayak Enterprises will take services such as digitisation and formalisation, availing of government loans, subsidies or other benefits, ensuring compliance with local, regional and national regulations, aiding partnership with digital marketing platforms and digital payment platforms, to the micro-entrepreneurs at their doorstep.

The report estimates that by enabling scale-up, USENET can aid in the creation of an additional 1 crore (10.3 million) jobs over five years going up to nearly 6 crores (56.9 million) over 10 years. Based on value-added per worker observed in this sector and assuming a 12 per cent nominal rate of growth in GVA, these jobs represent an additional economic value of Rs 2, 16, 000 crores at the end of 5 years and over 19 lakh crores at the end of 10 years.

Inaugurating the event, Anurag Behar, Vice-Chancellor of Azim Premji University, underlined the role played by automation in weakening the connection between growth in value-added and growth in jobs. He observed that "this endeavour is truly remarkable as you are putting a possible solution out there, not only identifying a problem."

TISS Director, Prof. Sahlini Bharat, noted the resonance with TISS' mission of fostering socially relevant entrepreneurship and called the proposal "simple in approach but lofty in goal." She also observed that the idea is an excellent example of supporting technology for society.

Presenting the policy proposal, Chairman FICCI Telangana State Council and co-author of the report, T. Muralidharan underlined the problem of "jobless growth" and pointed out that we are in danger of losing our demographic dividend. He called for giving micro-entrepreneurs their due recognition in the making of the nation.

Business Journal | Jan 23, 2021

Azim Premji University, FICCI, TISS roll out plan for employment generation in MSME sector

Azim Premji University, Federation of Indian Chambers of Commerce and Industry (FICCI) and Tata Institute of Social Sciences, Mumbai (TISS) on Saturday announced a new policy proposal for creating an Udyog Sahayak Enterprises Network (USENET) for employment generation and scale-up in the MSME sector.

The report proposes the creation of a support system that will improve Ease of Doing Business for largely informal micro and small entrepreneurs. Udyog Sahayak Enterprises will take services such as digitisation and formalisation, availing of government loans, subsidies or other benefits, ensuring compliance with local, regional, and national regulation, aiding partnership with digital marketing platforms and digital payment platforms, to the micro-entrepreneurs at their doorstep, according to a press release.

The report estimates that by enabling scale-up, USENET can aid in the creation of an additional 1 crore (10.3 million) jobs over five years going up to nearly 6 crores (56.9 million) over 10 years.

Anurag Behar, Vice-Chancellor of Azim Premji University, underlined the role played by automation in weakening the connection between growth in value-added and growth in jobs. He observed that “this endeavor is truly remarkable as you are putting a possible solution out there, not only identifying a problem”.

TISS Director Prof Sahlini Bharat noted the resonance with TISS’ mission of fostering socially relevant entrepreneurship and called the proposal “simple in approach but lofty in goal.” She also observed that the idea is an excellent example of supporting technology for society. Finally she noted that such a system can also help micro-enterprises emerge from the shock of Covid-19 which has hit this sector particularly hard.

Presenting the policy proposal, Chairman FICCI Telangana State Council and co-author of the report, T. Muralidharan underlined the problem of “jobless growth” and pointed out that we are in danger of losing our demographic dividend. He called for giving micro-entrepreneurs their due recognition in the making of the nation.

Report co-author and faculty member at Azim Premji University, Amit Basole, noted that “rather than creating more nano-entrepreneurs, we need to help existing MSEs to grow in size. We can do this by creating a support system which enables them to go digital, avail of government schemes, adopt new technologies, and increase productivity. This will create millions of new jobs.”

Commenting on the policy proposal, Meghaben Desai of the Self Employed Women’s Association noted that the power of the informal sector needs to be recognised and highlighted SEWA’s work on bringing farmers to digital platforms.

Mekin Maheshwari, co-founder of the Global Alliance for Mass Entrepreneurship, recommended that USENET could also incorporate a peer-to-peer learning component in addition to service provision. He also emphasised the scaling up and productivity increases were the key, and simple technological improvements could help in this regard.

Dilip Chenoy, Secretary General of FICCI, commended the authors on the collaborative effort and called for a momentum to be created to take the idea forward. He observed that the amount of investment called for the proposal per MSE was less than what state governments often spend on skilling an individual.

Deccan News | Jan 23, 2021

USENET can help increase MSMEs

Recognizing that Azim Premji University, FICCI, and the Tata Institute of Social Sciences, India’s demographic dividend requires a focused employment generation policy approach, they jointly proposed a policy to create Udyog Sahayak Enterprises Network (USENET) for job generation and scaling up in the MSME. sector. USENET also aims to improve the convenience of micro-enterprise businesses.

T Muralidharan of the FICCI, Prof Amit Basole of Azim Premji University and Prof Bino Paul of the Tata Institute of Social Sciences (TISS) developed a proposal for the Working Group of Ministers (WHO) on Work and Skills Generation, convened by MoS Home Affairs of the Government of India in October 2020.

The proposal, along with other proposals developed by the group, was submitted to the Prime Minister.

In a collaborative proposal, they recommend the establishment of Udyog Sahayak Enterprises (USEs), which will provide services such as digitization and formalization, provide government loans, subsidies or other benefits, to ensure compliance with local, regional and national regulations, which partnership with digital platforms to the micro and small enterprises (MSEs) before their doorstep.

There are several factors that are identified that are driving the growth of employment in India from both the supply side and the demand side. It has been proven that large enterprises create very few jobs. Even these few jobs are created for trained youth. Only MSEs can create a large number of jobs in India for workers with a wide range of skills and training.

T Muralidharan, Chairman of the FICCI Telangana State Council and co-author of the report, presented the policy proposal and highlighted the problem of “unemployed growth”, pointing out that the country is in danger of losing demographic dividends and calling on micro-entrepreneurs their proper recognition in the establishment of the nation.

Of the total of more than 63 million enterprises in the MSME sector, 62 million are informal MSEs. Of these, 40 million are business enterprises, enterprises with 2 to 5 workers are 22 million and enterprises with more than five, but less than 10, are estimated at 1 million.

About 107.6 million workers (97 percent of all jobs in the MSME sector) are in the MSE segment. These MSEs are more rural than urban – 51 per cent are in rural India. 20 percent of all businesses were women-owned businesses. There is great potential to grow these women-owned businesses.

MSME scaling

MSEs play a crucial role in linking the formal and the informal sector through value chains. And their upscaling can be achieved by creating a support system that allows these MSEs to go digital and increase their productivity. This will create jobs. USENET has been suggested to be the support system.

Anurag Behar, Vice-Chancellor of Azim Premji University, noted that this effort is remarkable as the proposal provides a possible solution to it and does not merely identify a problem.

Report co-author and faculty member at Azim Premji University, Amit Basole, noted that MSEs should be helped to create bigger nano-entrepreneurs, rather than to create more nano-entrepreneurs.

According to the proposal, 18 lakh Udyog Sahayak Enterprises (USEs) could be created over five years with the aim of sharpening these MSEs and improving the ease of doing business (EoDB) for MSEs.

To date, the EoDB has focused on large and medium-sized enterprises. It is important to take EoDB to the most important segment of the Indian economy – MSEs, experts say.

USENET is proposed as a complete business model, with the government catalyzing the factors that can lead to self-sufficiency of the USEs.

It is considered a service / transaction oriented model with a large bouquet of services made available to the MSEs.

Shalini Bharat, director of TISS, noted that such a system could also help micro-enterprises recover from the shock of Covid-19 which has hit this sector particularly hard.

Role of USES

For each USE, 15 MSEs will initially be allocated to work continuously. Each year thereafter, a few more are added until each USE has a capacity of 50 MSEs with which they have a relationship. The total reach through the 18 lakh USE network will be 4.4 crore MSEs within five years and 8.1 crore MSEs within 10 years.

It is estimated that nearly one million (10.3 million) jobs could be created over five years, and this would yield nearly 6 million (56.9 million) jobs over ten years. These positions represent an additional economic value of 2,16,000 crores at the end of five years and more than 19 lakh crores at the end of 10 years.

USES will be supported by a National Digital Ecosystem for MSMEs (NDEMs) which will be built on the principle of technology as a public benefit. It will operate using a single window accessing enterprise support services and schemes of central and state governments. A new special purpose vehicle can be created under the MSME ministry to be the implementation agency for USENET.

Financial modalities

Each USE will require a capital compensation of Rs 1,14,000, of which 50 per cent is a grant from the Government of India. Nearly 80 percent of working capital requirements come in the form of a MUDRA loan.

Youths invest 50 percent of the initial investment and also 20 percent of the margin money required for a working capital loan from the MUDRA bank.

Each micro-entrepreneur pays Rs 300 per month to the USE for their services, of which 50 percent or Rs 150 per month is reimbursed by the government. This GoI fee will be deducted after six years.

The total payment of the government in year 1 is R200 million, and on average more than five years amounts to R, 000,000 annually. Government expenditure per job created decreases from R 84 000 in year 1 to R 27 000 in year 2 to R s. 3000 in year 10.

At the end of five years, government investment shows a return of 712 percent over five years and almost 30 times over ten years. After six years, the government’s financial support is withdrawn and the USE will work on its own.

The Hans India | Jan 23, 2021

Union Budget Expectations 2021: Chambers suggest ways to turn economy around

Industry bodies such as Confederation of Indian Industries (CII), Federation of Indian Chambers of Commerce and Industries (FICCI) and Federation of Telangana Chambers of Commerce and Industries (FTCCI) want Union Finance Minister Nirmala Sitaraman to focus on boosting growth as well as strengthening financial sector, which could help rid the economy of severe contraction caused by the Covid-induced crisis.

Representatives of the Industry bodies are optimistic that the year 2021 would be a much better for the economy and hoped that economy, industry and livelihoods of people would turn for the better. They are hopeful that the Union Budget 2021 would play a vital role in achieving the objective of putting India on a sustained high-growth trajectory.

The CII has recommended a three-pronged strategy for Budget 2021 centering around the key themes of growth, fiscal consolidation and strengthening of the financial sector that would help overcome the impact of Covid on the economy. Its Telangana chapter chairman Krishna Bodanapu opines thus: "This year's budget comes at a time when the Indian economy is recovering from the unprecedented shock caused by Covid. The government has an unenviable task of ensuring a fine balance between supporting economic recovery and growth on one hand and ensuring macro-economic stability on the other."

CII suggests the budget proposals should focus on growth, and alongside look at fiscal management from a three-year perspective. "Government expenditure should be prioritised in three areas- infrastructure, healthcare and sustainability. The budget proposals should also address two critical areas of boosting private investments and providing support for employment generation," said the TS CII president.

FICCI Telangana Council chairman T Muralidharan if of the view that the upcoming budget must prioritise growth-oriented measures and fiscal considerations should be secondary. As part of macro suggestions, the FICCI wants the government to launch a scheme on the lines of MGNREGA for urban poor. Apart from these, the interest subvention of housing loans of 3-4 per cent for a period of three to four years would not help real estate but have a multiplier effect on many other industries.

"Consider making employee's contribution to EPF voluntary (without making any change in the employer's contribution). Also consider giving a three-year holiday for ESI contribution to both employers and employees. These will enhance the take home salary for individuals and will be helpful in reducing the gap between gross and net salary for employees at the bottom of the pyramid. Government has envisaged increasing public spend on healthcare to 2.5 per cent of GDP (from around 1.3 per cent currently). We urge the government to start spending an extra 0.5 per cent of GDP every year on health for the next five years," said Muralidharan.

The FICCI Telangana chairman called for acceleration in disinvestment programme. Privatisation should be in true spirit ensuring capital investment from private sector (domestic or foreign). Issuing a long-term pandemic bonds in both domestic and international markets, which could provide additional space for the government to borrow.

The Federation of Telangana Chambers of Commerce and Industries (FTCCI) urges the Centre to simplify income tax laws. FTCCI chairman Ramakanth Inani says the Income Tax Law should be simplified. There should be a Uniform Financial Year instead of Assessment Year. For reassessment - section 147/section 148 should be restricted to only exceptional cases, time limit should be prescribed for grant and payment of refund, TCS provision should be withdrawn alternatively. Besides, the organised sector, wherein the entire data is available in the GST returns, should be exempted from these provisions.

Inani further says the Section 80C deduction limit should be increased from Rs 1.5 lakh to Rs 2.5 lakh. The Section 44AD - presumptive tax basis should be extended to all assessees, including LLP. Under the interest on housing loan, the government should increase the limit to Rs 3 lakh under Section 24.

CII suggests the budget proposals should focus on growth, and alongside look at fiscal management from a three-year perspective. Government expenditure should be prioritised in three areas- infrastructure, healthcare and sustainability. The budget proposals should also address two critical areas of boosting private investments and providing support for employment generation – CII Telangana chapter chairman Krishna Bodanapu

Income Tax Law should be simplified. For reassessment - section 147/section 148 should be restricted to only exceptional cases, time limit should be prescribed for grant and payment of refund, TCS provision should be withdrawn alternatively. Section 80C deduction limit should be increased Rs 2.5 lakh. As for interest on housing loan, increase limit to Rs 3 lakh – FTCCI chairman Ramakanth Inani

Consider making employee contribution to EPF voluntary (without any change in employer's contribution). Also, consider giving a three-year holiday for ESI contribution to both employers and employees. These will enhance the take home salary for individuals and will be helpful in reducing the gap between gross and net salary for employees at the bottom of the pyramid – FICCI Telangana Council chairman T Muralidharan

The Hindu | Jan 23, 2021