MSMECC INDIA

Micro, Small, and Medium Enterprises (MSMEs) have received major relief in the form of a tailor-made stimulus package offered by the Narendra Modi government. The economic shock rendered by the coronavirus pandemic has been devastating for these business units whose contribution accounts for close to a third of India's GDP and provides employment to almost 12 crore persons. To aid the sector in combat this unprecedented stock, Finance Minister Nirmala Sitharaman has announced six relief measures as part of a larger Rs 20 lakh crore package. Specific Measures for the MSME sector include collateral-free loans worth Rs 3 lakh crores, subordinate debt provision worth Rs 20,000 crores collateral-free loans worth Rs 3 lakh crores, subordinate debt provision crores inclusive of partial guarantee support through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), equity infusion of Rs 50,000 crores, revision of the current MSME definition, disallowance of global tenders up to Rs 200 crores in government procurement tenders and lastly, payment of outstanding dues to MSMEs, by government/CPSEs within 45 days.