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Last Updated : Oct 16, 2019 03:45 PM IST | Source: Moneycontrol.com

Chief Economic Adviser KV Subramanian urges large corporations to clear MSME dues

He said the virtuous cycle with investment was slowing down secularly.

The large corporates should clear the 30-day receivables or dues to the MSMEs, Chief Economic Adviser KV Subramanian said on October 16.

"Large corporates need to set a benchmark and lead the way," Subramanian said.

The CEA said that the government has been on its toes regarding responding to the needs of the economy.

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He also said the virtuous cycle with investment was slowing down secularly.

"Unlike consumption, investment needs to be done with a long-term perspective. Fundamentals of economy remain very strong," he said.

He said corporates need to recognise that the virtuous cycle operates with a lag anf that this was the right time to invest in the economy.

India has been in the throes of an economic slowdown. To combat that, Finance Minister Nirmala Sitharaman announced a cut in corporate tax rates in September, bringing it down to 22 percent from 30 percent for existing companies, and to 15 percent from 25 percent for new manufacturing companies.

However, data still continues to paint a different picture. India's industrial output contracted by 1.1 percent month-on-month (MoM) in August, according to government data. Manufacturing output, which accounts for more than three-fourths of the entire index, showed a decline of 1.2 percent in August, against a 5.2 percent rise in in the same period a year ago.

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First Published on Oct 16, 2019 03:42 pm
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