Prime Minister, Narendra Modi first held his discussions with the state CMs commemorating a plan for lockdown 4.0. The reports said that the 2 discussion slots held focused on lockdown exit phase, economy, liquidity and the reformation.
Proceeding with the theoretical plan, the announcement was made on live broadcast & the 20-lakh crore package to revive the economy. More so, the consequences are right under the eye of the storm which needs to be tread sensitively.
With the amount of participation and support the country tends towards the leader, Mr Modi has boosted the economy for MSMEs through “Make in India”.
For the crippling businesses across the country, ‘Atmanirbhar Bharat Abhiyan’ to boost Make in India and strengthen the Indian supply chain globally.
“The relief package is built on five pillars – economy, demography, system, infrastructure, and demand to support the Indian supply chain – considering the land, labour, law, and liquidity that will support small businesses, MSMEs, and farming sector,” he said.
The economic stimulus
Following which Nirmala Sitharaman outlines the details of “Atmanirbhar Bharat Abhiyan”.
Wherein she specifically announces about the 3-lakh crore collateral-free loans for MSME’s and more measures to bring forth the relief.
“He emphasized how policies will be introduced in the coming months to spur growth and building a ‘self-reliant’ or ‘aatmanirbhar’ India on the five pillars of the economy, infrastructure, technology-driven systems, demography, and demand.”
The roll out!
The breakdown of the 20 lakh crores package by Nirmala Sitharaman was clearly to the micro, small and medium enterprises. The packages deemed on the “wide consultation” with the inputs obtained from the industry were in the light of “due consideration”.
According to the scheme, the measures are based on land, labour, liquidity ad law, the four domains to seize the pandemic hit. Further to ease the business and comply law and order.
30% of nations’ GDP – MSMEs
Yes, they contribute about 30 % of the complete nation’s gross domestic product (GDP).
“This includes providing collateral-free automatic loans worth Rs 3 lakh crore for businesses. Those companies that have an outstanding loan of Rs 25 crore and a turnover of Rs 100 crore are eligible for it. In addition, the tenure of these loans is going to be four years with a moratorium of 12 months on principle repayment.”
The Finance Minister also announced that a provision of Rs 20,000 crore will be given as subordinate debt to stressed MSMEs or business which are non-performing assets (NPAs).
Redefining the MSMEs
“According to the new criteria, manufacturing and services company with a minimum investment and turnover amount of Rs 1 crore and Rs 5 crore respectively will come under micro-enterprises. A similar criterion was announced for small and medium enterprises as well,” she said.
Prime Minister’s zeal seal
“Our responsibility to make India a self-reliant India will be powered by the energy of the 1.3 billion population. With a new energy and new determination, we need to move ahead,” the Prime Minister said.