Empowering MSMEs! Another major booster dose for small scale units coming soon from Modi government?

Knowing the true potential of MSMEs, Modi government by means of its various policies is looking to revive the small scale units in India. Now, it seems another major boost for small scale units is coming soon. Union Minister for MSME and Road Transport and Highways, Nitin Gadkari today said that the government is exploring new financial lending institutions to support small-scale units in terms of financial support.  Gadkari said that the government is working towards strengthening the NBFCs which will help small businesses to avail easy credit in the coming time.

He was speaking at a meeting via video conferencing with the Members of Calcutta Chamber of Commerce on impact of COVID-19 on MSMEs and the measures taken to address the challenges at hand.

Addressing the members, Gadkari reiterated that these are trying times as we are waging a war against COVID-19 pandemic as well as the economic instability caused by it. He requested all the stakeholders to work in tandem and urged the industry to maintain a positive attitude during this time to tide over this crisis.

The Minister also stressed on usage of PPE (masks, sanitizer etc.) and advised to maintain social distancing norms in personal life and at workplaces.

Apprising the representatives of the recent announcement on Special Economic Package: Aatmanirbhar Bharat Abhiyan, he explained various support measures which have been announced for MSMEs such as collateral-free automatic loan, distress fund etc. He said that all these measures will provide the required support to MSMEs to face the current economic challenges.

The Minister also informed them that there has been restructuring of 6 lakh MSMEs till March 2020 and the Ministry is aiming to cover an additional 25 lakh until December 2020. He added that the current contribution of MSMEs in export is 48%, which may be increased to 60%. He further shared that currently 11 crore jobs have been created through MSMEs and this to be increased to 5 crores.