13 APR,2020 | MEDC
Small businesses account for almost a quarter of India’s $ 2.9 trillion economy and employ over 500 million workers, as the MSME sector is the biggest employment generator in India after agriculture. However, the lockdown has put MSMEs in a tight spot. Unless a turnaround could soon be engineered, India’s exports risk being further affected. Luckily, the government is seized of the situation and it is soon expected to announce a trillion dollar package with focus on assisting MSMEs weather the Covid-19 outbreak. This new package is likely to include increases in the limits of bank loans for working capital needs, hiking threshold limits for availing of tax exemptions, and relaxing rules for deposits of income tax and other dues. Of course, it is bound to further stress the exchequer, but policymakers have to deal with that separately. Our MSMEs currently need focused state support.
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