Chief Economic Advisor KV Subramanian on Wednesday called upon the industry to start making investments, stressing that the fundamentals of the economy are “very very strong”.
On more than Rs 40,000 crore of dues pending to small companies, he nudged large corporates to ensure timely payment to the MSME sector as small players are dependent on cash flows.
Large companies must play a critical role in clearing cash dues to smaller companies, he said at an event organised by industry chamber Ficci being attended by several corporates.
Finance Minister Nirmala Sitharaman on Monday had said that according to returns filed by large corporates to the Corporate Affairs Ministry, as much as Rs 40,000 crore was due to the MSME sector.
The CEA further said the slowdown in the economy is due to a decline in investment, which is a key driver.
