The much-awaited economic package of the government has led MSMEs to heave a sigh of relief amid the growing tensions of economic slowdown in the coronavirus crisis. The relief package is expected to infuse fresh life into the country’s micro, small and medium enterprises (MSMEs), which account for almost 30 percent of the national GDP and 45 percent of the total manufacturing output.
The growing clamour for fiscal support has led the government to introduce measures for MSMEs that have been hit by the lockdown. With a series of encouraging announcements, the Finance Minister outlined the government’s plan to raise the morale of the industry and the MSME sector in particular. Under the Atmanirbhar Bharat Abhiyan, the minister announced several measures for MSMEs that are expected to help 45 lakh business units resume their operations. Here are the key announcements for MSMEs.
Conclusion:
The financial incentives introduced by the government will rescue MSMEs reeling under the impact of the lockdown and provide much-needed liquidity to the sector. Increase in credit guarantees, subordinate debts, clearing of outstanding dues and a broader definition would go a long way to revive the growth of MSMEs and boost the efforts to make the country self reliant under the Atmanirbhar Bharat Abhiyan.
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