The Commerce & Industry Minister Piyush Goyal has hit the nail on its head by mentioning that companies should start paying their suppliers within a week or 10 days.

No doubt, we have an economy slow down which can be very well tackled by faster circulation of money. Today large companies, PSU’s as well as Union Ministries take six months to years together to pay for the services and goods purchased, even on competitive tenders. This compels entrepreneurs to spend their working hours in follow-ups while interest charged on borrowed sums eats the perceived profits. it also opens up a window for corruption.

In comparison, if the dues are cleared within 30 days money will get re-circulated giving a boost to economy.

One should not forget the issue of huge delay in getting the income tax refunds as well, which again eats up the company’s working capital and restrict the future growth.