The new package aimed at MSMEs could include increases in the limits of bank loans for working capital needs, hiking threshold limits for availing of tax exemptions
A second stimulus package the Centre is poised to announce in coming days will be worth around Rs 1 trillion and focus on help for small and medium businesses weathering the coronavirus outbreak, two senior officials said on Wednesday.
Last month, the government outlined a Rs 1.7-trillion economic stimulus plan providing direct cash transfers and food security measures to give relief to millions of the poor hit by an ongoing 21-day nationwide lockdown.
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“The second package could be focused largely on MSMEs (micro, small and medium enterprises),” one of the senior government officials, with direct knowledge of the plan told Reuters.
The official said a separate package could be announced for bigger companies after assessing the extent of the hit they have faced due to the lockdown imposed to fight the outbreak.
Small businesses account for nearly one-quarter of India’s $2.9 trillion economy and employ more than 500 million workers, according to government estimates.
Source: Business Standard
