COSIA Manifesto

Manifesto of demands framed against the backdrop of the Lok Sabha elections

COSIA is the National Chamber of Micro, Small & Medium Enterprises in India. The MSME Sector contributes 8% to the GDP and is the largest job provider in the country, next to agriculture. Its contribution is 45% in Indian exports. Inspite of its pivotal role in the economy, the MSMEs in India are facing a variety of problems and hurdles. It is essential to resolve their issues and therefore on the backdrop of Loksabha elections, COSIA is declaring its MANIFESTO for the appropriate consideration by all the political parties and their candidates.

The Demands are as follows:

MSMED Act, 2006

To address the issue of Delayed Payments and also to enhance the competitive strength of MSMEs, the Micro, Small and Medium Enterprises Development Act is being enacted by the Govt. of India and is in force from 2nd October 2006. However, the implementation of the Act needs to be strengthened. COSIA suggests:

1. All the Govt. Departments and Semi-Govt. Corporations, Boards shall make the payments to the MSEs within a period of 45 days without fail.

2. The Govt. should implement the Public Procurement Policy for MSEs in its letter and spirit.

3. The MSE Facilitation Councils and or the Secretary MSME should have power to recover the dues from the party against whom the Facilitation Council has passed the verdict.


For the field of Taxation COSIA suggests:

1. The Goods and Services Tax [GST] be introduced immediately by subsuming all Indirect Taxes.

2. All the petroleum products should be included in the VAT.

3. The Direct Tax Code be introduced at the earliest. To provide boost to the entrepreneurship, special tax concession may be provided in it.


Finance from the banks is the biggest issue for the MSME Sector. Though, finance to this sector is under priority loaning, banks are seldom providing adequate, timely and low cost finance to these enterprises. Therefore, COSIA demands:

1. There should be a line of credit for the MSMEs instead of different products for different purposes. This should be for a period of minimum two years.

2. The MSEs should get the finance from banks at the rate not more than 2% plus the base rate.

3. The banks should provide minimum 30% of the turnover as working capital.

4. All MSEs should get the finance upto Rs. 2 Crores under the Credit Guarantee Scheme only. The Multi-State Co-operative banks should be roped in the said scheme.

Labour Laws

The Second Labour Commission had recommended Small Enterprises [Employment Relations] Act which should be accepted and accordingly enacted at the earliest being a labour reform for the MSE Sector.


An Appeal for the development of the vital MSME sector

1. COSIA Appeals to all political parties to include above demands in their election manifesto and promise for its implementation in case the party forms the govt.

2. All the MSME Associations in India are requested to publicize these demands and press the political parties for its inclusion in their manifesto.

3. It is suggested that the MSME Entrepreneur should vote to that candidate and political party who consents for the implementation of COSIA MANIFESTO for the cause of MSME.

Dr. M.R. Khambete


P.S. Agwan

Hon. Gen. Secretary