The corona-virus has the far-reaching impact on the world economy. The Indian government is taking progressive steps to curb the loss caused by the corona-virus pandemic, the MSMEs sector is hugely affected when the revenue generating activities are stopped or shut down due to the pandemic so it is difficult to survive .
With this situation mounting on the Indian economy, the government intervention is must, so here is Indian govt.bringing the relief package for the industry, economy.Micro, small & medium enterprises form a significant part which require immediate relief.
MSMEs sector contributing almost 25-28% to India’s GDP & about half of the exports (data by Directorate General of Commercial Intelligence and Statistics (DGCIS)) the MSMEs sector play a significant roles in Indian economy so it needs the fiscal help to overcome the effect of lockdown.
To provide support RBI has given a moratorium on term loans, eased working capital financing and put off interest payment on working capital facilities without an asset classification downgrade.
Additionally, many public sector banks have introduced emergency credit lines whereby MSMEs borrowers can avail a maximum loan amount of up to INR 200 crore or 10 per cent of the existing fund-based working capital limits. Small Industries Development Bank of India (SIDBI) has announced a 5 per cent rate concession on all loans to MSMEs. The government has also extended GST payments date till June 2020.
Despite above measure, due to lockdown the production is stopped so demand is not fulfilled and revenue is not generated so the basic expenses of the sector that are salary of staff, payment of godown rent, payment of tax are not paid.
Despite government has taken the favourable measures, these steps taken by the government are not enough so there should be some new ideas need to be implemented other than banks providing the mortarium, government providing exemption in GST payment. There is need that government should formulates certain policy to mitigate the effect of the global crisis.
In nutshell each and every person at there end be it individual, institution, industry and government are doing something or other which can be proved beneficial for the people of India and the world. So dear readers contribute something for the situation in world nearby you.
