The Government of India introduced several qualitative and quantitative schemes to promote Micro, Small, and Medium Enterprises (MSMEs). The schemes are aimed at providing support to achieve holistic development of the MSME sector and thereby contribute to economic growth and development.
Micro, Small and Medium businesses, which employ the maximum number of people in the country, are in dire need of the government’s help in the form of tax breaks, credit card facilities, and easier access to loans, and so on. MSMEs are also the backbone of the economy and account for over three-fourths of the total employment in the country. In into the mainstream and has announced several initiatives to support them. These include setting up an SME Bank, an e-marketplace for small businesses, and an INR1, 000-crore fund for SMEs. While these initiatives will help the businesses grow and expand their reach, the government should also focus on giving small businesses the right platform and policies to operate.
Severe impact of the COVID-19 on economy
India’s economy is slowly crumbling away with each passing day due to its limited ability to defend itself against this global pandemic.This economic crisis led the government of India to take several steps to support MSME companies. MSME businesses in India have benefited from several tax exemptions and capital subsidies, as well as concessional financing, easier MUDRA loans and interest-free loans. The government has also introduced a series of insurance schemes to benefit India’s MSME sector.