New Delhi, Jul 2 (PTI) RSS-affiliate Laghu Udyog Bharati (LUB) on Thursday opposed the criteria for classification of enterprises as micro, small and medium, saying it will promote trading of imported goods rather than promoting manufacturing in the country and demanded that only enterprises owned by Indians should be classified under this category.

Opposing the notification on classification of enterprises issued by Micro, Small and Medium Enterprises (MSME) Ministry on June 26, the LUB said it "defeats" the purpose of Atmanirbhar Bharat Abhiyan and vision of Prime Minister Narendra Modi.

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"To become completely self reliant, only those enterprises should be registered under the micro, small and medium enterprises category which are owned by Indians," LUB general secretary Govind Lele told PTI.

MSME registrations must be restricted to Indian ownership enterprises only. This issue has been continuously pursued by it, but finds no mention in the notification and is completely silent on it, the Sangh affiliate said in a statement.

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""Our insistence of Indian ownership of MSME stems from the experience that foreign companies have secured indirect investments and hence ownership in various such ventures taking advantage of such loopholes," the MSME industry body said.

The LUB has also opposed the inclusion of trading enterprises for classification as MSME, saying that it will promote trading of imported goods rather than manufacturing and innovation in the country.

"On the basis of feedback received from its members across the country, the inclusion of service and trading enterprises with increased turnover limits, will provide all the privileges of MSMEs which will push imports and will impact manufacturing in the country," Lele said.

Laghu Udyog Bharati has members in 465 districts across the country and being associated with Sangh -- ideological parent of the BJP, it enjoys certain level of influence in policy making.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)