The payments due to the MSMEs, for the supplies effected by them to the automobile industry alone, is claimed to be around Rs 2,000 crore-Rs 3,000 crore
MSMEs consumed about 30-35 per cent of the key raw materials such as copper, zinc, aluminium and steel.
The price of copper zoomed from $6000/tonne to $9100/tonne within a period of a month in July-Aug 2008 in the international market and taking cue from it, domestic producers also hiked the rates, which left the consuming industries at a huge cost disadvantage as the domestic industries could not absorb the increase in prices
70-80 per cent of the components needed by the major industries were supplied by the micro and small enterprises
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