MSMEs stunted due to policy deficiency, says Congress MP in Parliament

Congress Rajya Sabha MP from Tamil Nadu, Praveen Chakravarthy, on August 3 said he was prevented from speaking on the MSME Amendment Bill in Parliament because he began his address with a reference to the nationwide student protests against the NEET paper leaks.

In a video statement released after the incident, Chakravarthy said the protests, while seemingly about examination paper leaks, reflected a deeper anxiety among the youth about their future. “Youth were gasping for jobs, incomes, and prosperity. MSMEs could be the magic jobs pill for India’s youth, providing optimism for the future,” he said, reading from his prepared speech.

The MP argued that India’s MSME sector is not fulfilling its potential as a job creator due to what he called a “policy deficiency.” He pointed to official government claims that India has nearly eight crore MSMEs. “Then, even if on average, each employed 10 people, that should be jobs for 80 crore people. But lines outside exam halls are long, as our companies are small. Our MSMEs are stunted. They do not grow because of a policy deficiency,” he said.

Chakravarthy proposed a structural overhaul of the MSME sector, suggesting that firms that grow and hire more workers should be rewarded with additional funding and government orders until they become large. “This Bill is concerned with administering smallness, not enabling growth,” he said, criticising the MSME Amendment Bill brought by the government.

The MSME Amendment Bill, officially known as the Micro, Small and Medium Enterprises Development (Amendment) Bill, was introduced in the Rajya Sabha on August 2. It seeks to change the definition of MSMEs and adjust the criteria for classification, including investment thresholds. The Bill has been referred to a parliamentary standing committee.

Chakravarthy’s remarks highlight a growing debate over the effectiveness of government policies in supporting small businesses and generating employment. While the government maintains that its reforms are aimed at helping MSMEs grow and compete, opposition members have argued that the amendments do not address the root causes of stunted growth, such as access to credit, technology, and markets.

The MP’s statement also drew attention to the NEET paper leak protests, which have mobilised students across the country. The protests have raised questions about the integrity of entrance examinations and the pressures on young people seeking educational and job opportunities. Chakravarthy linked these issues to the broader economic challenges facing India’s youth.

As the Bill is examined further, the concerns raised by Chakravarthy and other parliamentarians are likely to be discussed in the standing committee. The government has not yet responded publicly to his allegations about being prevented from speaking.