NEW DELHI: Finance Minister Nirmala Sitharaman on Wednesday announced loan guarantee loans to micro, small and medium enterprises (MSMEs), which are expected to help about 4.5 million units to resume operations.
Announcing the details of the ??$ 20 trillion fiscal stimulus package, Sitharaman said, automatic unsecured loans will benefit MSMEs until ??25 crore in outstanding loans and ??100 crore in sales.
The size of the scheme is ??$ 3 trillion, she said, adding that the loans will have a 12-month moratorium. “The loans are 100% guaranteed as cover from banks and non-bank finance companies on principal and interest. They will be available until October 31. No new warranty is required. “
Sitharaman also said the next wave of reforms with autonomy as a guiding principle will focus on land, labor, cash and laws.
“Essentially, it’s about stimulating growth and building a self-sufficient India. This is why this initiative is called “Atmanirbhar Bharat Abhiyan”. The vision of an autonomous India, said the minister, rests on the pillars of economy, infrastructure, technology driven systems, demographics and demand.
Prime Minister Narendra Modi on Tuesday announced the long-awaited stimulus package of ??$ 20 trillion for businesses and workers to mitigate the devastating blow from foreclosure that has pushed many businesses to the brink of bankruptcy, with income and cash flow disappearing overnight.
The package, comprising around 10% of India’s quality domestic product (GDP), will focus on land, labor, cash and laws. It represents nearly a full year of India’s gross tax revenue and includes the monetary easing announced by the Reserve Bank of India.
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