Prime minister Narendra Modi yesterday announced 20 lakh crores economic package to revive the economy battered by novel coronavirus COVID-19. PM urged common man to use this opportunity created by COVID-19 outbreak to make India ‘Self Reliant’ and make our country best in the world.
20 lakh crores package also includes previously announced 1.74 lakh crores package and RBI’s various measures to enhance liquidity in the market.
The package is worth around 10 percent of the GDP and “will play an important role in the Atmanirbhar Bharat Abhiyan’ (self-reliant India campaign)”.
Find out highlights of package announced by finance minister Nirmala Sitharaman .
1) Micro, Small & Medium Enterprises
The MSME sector employs 11 crore people, comprises 45 per cent of the country’s manufacturing output, 40 per cent of exports and almost 30 per cent of the GDP.
Rs 3 lakh crore worth of collateral-free automatic loans for businesses.
Loans will have a four-year tenor with a moratorium of 12 months on principal repayment
Government will provide 100 per cent credit guarantee cover to Banks and NBFCs on principal and interest.
New definition of MSME : units with investment up to Rs 1 crore to be called micro-units. Till now, it was Rs 25 lakh now.
No unfair competition now: Global tenders will not be allowed in government procurement tenders up to Rs 200 crore.
Rs 20,000 crore provision as subordinate debt for functioning MSMEs which have turned into non-performing assets (NPA) or are stressed.