JOIN USSitharaman's relief measures for MSME sector
In order to protect Micro, Small and Medium Enterprises (MSMEs), Finance Minister Nirmala Sitharam proposed a number of schemes for the sector.
One of the objectives of the Modi government 2.0 is helping MSMEs by providing loans up to Rs 1 crore within 59 minutes through a dedicated online portal.
Further, under the Interest Subvention Scheme for MSMEs, 350 crores has been allocated for FY2019-20 for 2% interest subvention for all Goods and Services Tax-registered MSMEs, on fresh or incremental loans.
"Government payments to suppliers and contractors are a major source of cash flow, especially to SMEs and MSMEs", Sitharaman said in her maiden speech.
She said she believed that investments in MSMEs would receive a big boost if the delay in payments is eliminated. She addressed the issue by introducing a payment platform for MSMEs for bill completion and payments.
The Finance Ministry has decided to extend the pension benefit to about three crore retail traders and small shopkeepers whose annual turnover is less than 1.5 crore under a new scheme called the Pradhan Mantri Karam Yogi Maandhan Scheme.
The Make in India government scheme covers 25 sectors of the economy and encourages companies to manufacture their products in India. That scheme will also put an emphasis on MSMEs.