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Boost to the MSMEs under ‘Atma Nirbhar Bharat Abhiyaan’

The Government announced a special economic package of Rs.20 lakh crore with the aim of making the country “Atma Nirbhar” to sustain the adverse effects of COVID-19 pandemic. Under this package, a substantial number of measures were announced for the Micro, Small and Medium Enterprises sector, which included:

  • Revision in the definition of MSME and removal of the distinction between manufacturing and services MSMEs

  • Provision of collateral-free automatic loans of up to INR 3 lakh crores

  • Setting up of a Fund of Funds with a corpus of INR 10,000 crore for MSMEs which will provide equity funding to MSMEs with growth potential and viability

  • Disallowance of global tenders in procurements up to INR 200 crore to provide better opportunities for domestic players

  • Payment of dues to MSMEs from the Government and CPSEs within 45 days

It is safe to say that these provisions and restrictions have given a boost to the MSMEs in the country, especially during these testing times.

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