Auto dealers cheer government’s MSME decision

Automotive dealerships that play a key role in the auto value chain were impacted during the pandemic due to declining sales, lockdown restrictions, and high finance and maintenance costs. No wonder the government’s recent announcement to include the retail and wholesale trade under the ambit of Micro, Small & Medium Enterprises (MSME) has been welcomed by the dealership fraternity who can now look ahead to availing the benefits and subsidies offered by the states to MSMEs.  “Under the leadership of the PM, we are committed to strengthening of MSME and making them the engines for economic growth. The revised guidelines will benefit 25 million retail and wholesale traders,” says union minister Nitin Gadkari, who until recently held both, the MSME, and Road Transport and Highways portfolios. (In a cabinet reshuffle on July,7, 2021, Narayan Rane, has taken over the MSME portfolio.) Gadkari, tweeted, “The retail and wholesale trade were left out of the ambit of MSME. Under the revised guidelines, an order has been issued to include retail and wholesale trade as MSME and extending to them the benefits of priority sector lending under RBI guidelines.”  The government’s decision has been welcomed by the Federation of Automobile Dealers Associations (FADA).