
HOW MUCH HAVE YOU GOT?
Here are some interesting facts:
- Total number of MSME businesses: 4.6 Crore
- Total people employed: 10.6 Crore
- Total contribution to GDP: Approximately Rs.72 lakh Crore
- Total contribution to exports: Approximately Rs.68,000 Crore
- Total pending payments stuck outside (including the government and PSUs): Rs.5 lakh Crore
It follows that the average MSME employs just over 2 people, turns over just over Rs.15 lakh and exports just under Rs.16,000 of it, while having Rs.1 lakh outstanding payments to be collected from buyers.
So, questions:
- How much working capital do you think they have in total? How much of it is being utlised? What is 20% of it? (Forget for a moment that the stimulus package offers a soft loan with a 12m moratorium to the extent of this 20% and that this is not a grant, a relief, or a subsidy but simply a line of credit which has to be repaid, in full, with interest)
- How many employ more than 20 people in permanent positions? How much PF do they pay? What is 2% of that? (Forget for a moment that this is merely for 3 months and that it will end up reducing the PF of the employee while increasing the outflow of the employer to their employee, thus impacting business cash flows)
So, I want to #AskPS: What is the exact amount you have (or intend to) gained in terms of free cash flow from this package for your business? If you want to add some other cash gain from some other scheme announced within this package, feel free, but please tell me which scheme you are counting in so I can understand your figures better.
Remember: I am not asking you to be a spokesperson for your industry or for a political party. I am not asking you about patriotism or how the country will gain or about your sacrifices or soldiers standing in Siachen or anything. That discussion is beyond the brief of this post. I am asking you a simple question as above, viz., how much is only your particular company going to gain? You may answer in an absolute figure, but I would like it if you tell me what figure is in terms of a percentage of (a) your turnover, and (b) your monthly burn.


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