Efforts to attract more investment must not lose momentum: MSMEs

MSMEs are appealing to political parties across ideological spectrums to ensure that the continued efforts to attract more investments and make Kerala a preferred destination for investors do not lose momentum. While the manifesto focuses on increasing fresh investments, the special conditions and requirements of each state need to be considered, said an official from the Kerala State Small and Medium Enterprises Association (KSSIA).

A veteran businessman who is a member of KSSIA said that Kerala has been able to create an atmosphere where investors are no longer skeptical about opportunities. In addition to the basic equipment for starting a new enterprise, people’s attitude towards investors also needs to change. “Their attitude should be one that welcomes investors,” he added.

KSSIA also said local government authorities should take the lead in encouraging new investments within their jurisdictions. The atmosphere has improved with the introduction of new equipment such as the online payment system “K-SWIFT.” But with an extra willingness to seek out potential investors and encourage them, good work can continue.

The 45-day payment rule to ensure MSMEs receive payment on time for supplies came into effect from April 1, but it has left those receiving deliveries of goods from MSMEs in trouble. KSSIA officials said the rules are aimed at helping MSMEs receive payments on time, but some orders may be placed with non-MSME companies.