MSME to be the big focus in govt’s Rs 20 lakh crore package
New Delhi, May 13: The much awaited financial package of Rs 20 lakh crore will be revealed by Finance Minister, Nirmala Sitharaman later today.
The package is expected to have more funding for Mudra loans that are meant for small businesses.
To ensure that small businesses are not started of a working capital, the Finance Ministry also has floated a proposal for the Cabinet to guarantee fresh working capital limits to small units through the National Credit Guarantee Trustee Company. The current bank exposure to the MSMEs is estimated at around Rs 15 lakh crore.
The package is also expected to include a provision for additional loans of up to Rs 3 lakh crore for the MSMEs.
During his address to the nation, PM Modi said that this package, taken together with earlier announcements by the government during COVID crisis and decisions taken by RBI, is to the tune of Rs 20 lakh crore, which is equivalent to almost 10 per cent of India's GDP. He said that the package will provide a much needed boost towards achieving 'Atmanirbhar Bharat' or a self-reliant India.
He observed that the package will also focus on land, labour, liquidity and laws. It will cater to various sections including cottage industry, MSMEs, labourers, middle class, industries, among others. He informed that the details of the contours of the package will be provided by the Finance Minister from tomorrow, in the coming few days, the PM had said on Tuesday.