2008-09 has been a difficult year for Indian MSMEs. The primary reason being the domestic economic slowdown as a result of the global financial crisis and the other being the subdued export demand. However, in spite of the difficult conditions the MSME sector has demonstrated its resilience. The sector has, however, been hugely benefitted from the various  measures that have been announced in the last nine months as part of the Government’s stimulus packages. A CII survey has shown that measures like reduction in CENVAT rate, interest rate cut, additional liquidity creation measures, export support through interest subvention, reduction in lock in period under Credit Guarantee Scheme, additional plan expenditure of Rs 20,000 crores, etc have helped the MSME sector to tide over the difficult times. While it appears that the worst of the crisis period is over, a complete turnaround is not within sight yet for most of the industry. The difficulty is particularly acute for companies and units which have large export dependence.  With the Government having announced drought conditions in a large number of districts across the country, the additional worry is on account of the impact that this would have on demand in the economy. A recovery in its nascent stage could get adversely affected by the slack in demand. It is with this background that CII submitted this Agenda to Hon''ble Prime Minister of India on 26 August 2009.