Government Support Extended To MSMEs During COVID-19
MSME is one of the largest industries that have been blown due to the impact of COVID-19 in India. It is worth noting that it provides work to 114 million workers and also contributes to 30% of the country’s GDP. The severe disruption in the supply chain and manufacturing unit due to the countrywide lockdown has altered the manufacturing of products or services.
The impact of coronavirus on the global economy is directly affecting the business structure and the lives of millions of people. Hence the global governing bodies are introducing essential measures to indulge financial support and credit in required sectors. In a recent survey conducted on over 5,000 micro, small and medium enterprises, it was found that nearly 70% of them cannot afford to pay salaries to their workers due to the countrywide lockdown. Even CII has suggested the government release outstanding dues including the payment for products and services to MSMEs and PSUs.
ASSISTANCE TO MSME EMPLOYEES IN THE PANDEMIC
The Indian Government has declared a stimulus financial support focused entirely on the MSME sector. The CII industry has also formulated CII COVID rehabilitation and relief fund to provide financial security to the micro, small and medium enterprises (MSMEs). For a very long time, the Confederation of Indian Industry (CII) has been making various efforts to highlight the requirement of emphasizing the financial security of micro, small and medium enterprises.
The government has been constantly exploring all the possible ways to facilitate the workers and employees of this sector. With a recent recession conducted by the Bharat Chamber of Commerce, Ministry of Road Transport, Highways, and MSMEs has stated that financial assistance for MSME workers is the topmost priority. However, the final decision in this regard will be highlighted by the Prime Minister and the Finance Minister of the country.
Keynote: In order to access the benefits and financial support offered by the state or central government under the MSME fund provision, it is mandatory for the small, medium, or large businesses to register their respective platforms on the MSME portal. There are lots of help and support measures initiated for the needful, all you have to do is sign in to the application form and our platform can manage registration for you.
ECONOMIC PACKAGES FOR ASSISTING MSMEs
According to Shri Nitin Gadkari, the government is analyzing minute foundations and prerequisites of MSMEs. The governing bodies are also discussing the packages that can tide away from the pandemic crisis for small and medium businesses. He has also said, "we are constantly monitoring the crisis in the MSME sector and looking forward to coming up with helpful policies. We are also looking forward to supporting all businesses in the same way along with controlling the poverty rate".
It has been mentioned that due payment is likely to be released soon to MSMEs from central and state government agencies that are estimated to be around INR 1 crore. The government is actively working to clear all the dues and formulating the schemes to improvise liquidity.
Considering this statement, it can be said that if the amount mentioned by the minister is precise, then it can turn out to be an excellent relief strategy for MSME workers.
OPPORTUNITIES IN MSMEs AMIDST THE CRISIS
The government and ruling bodies are highly determined to provide financial support to the workers and employees in the chain of MSMEs. Out of all the declarations, who know the crisis can become a blessing in disguise, especially for MSMEs? It will promote the startups or new business segments to set up their own export chain. In addition to it, the MSME sector also contributes around 30% of the economic growth of the country and nearly 48% in exports. As Japan and the US are already moving to limit their exports, it can possibly benefit MSMEs to overpower them.
SPECIAL PROVISIONS FOR SELF-EMPLOYED ENTERPRISES
The MSME framework has remained imperative for various businesses in order to draw the forecast of cash flow and their operations. The government has created various windows of compensation for all the self-employed businesses in this sector that can possibly decrease the overall turnover. The government is also trying to approve the compensation which is subjected to control the amount. The Indian government has also considered releasing the provident fund for the businesses having 100 workers which are almost 90% of the employees on less than 15000 rupees per month. His contribution accounts for 24% of the total wages that will be credited to the provident fund account in the next 3 months.
Significance of GeM (government e-marketplace)
'H'bl PM- GeM facilitates requirement in release time at limited cost and improve quality'
The initiatives taken by GeM is uplifting the profit and growth for MSMEs, service providers, and manufacturers in the chain. This initiative strives to maintain the pace of the challenges thrown by the pandemic. All the MSMEs and other businesses registered under GeM will be benefited and get the commands from the government itself.
This platform is equally efficient for buyers as well as sellers and its advantages include:
Uninterrupted purchase procedures
Provision of the simple return policy
Ensuring transparency and continuous vendor rating
One-stop-shop for marketing as well as reverse auction on products and services
Other than the above-mentioned support measures, it is important for the government to draw a plan that can allow MSMEs to reopen their manufacturing activities in a well-organized manner. The pandemic has spread its roots having an unforeseeable ending, in which most of the things are opaque. However, what is clear is that it definitely requires a close association between the central and state governments to ensure the stability of workers and employees of MSMEs. Further, it includes mitigating the risk of managing the business operations and helping the businesses to rise again. It is speculated that the businesses are all set to be offered the needful assistance.
Where do we stand?
The utility of MSME - Micro, Small, and Medium Enterprise Registration & certification are known to all and it is considered as one of the undefeatable business tools that enable the platforms to remind out of the crowd. Our MSME online registration process is extremely convenient for all the Micro, Small, and Medium Enterprise sections and within a few simple steps, you can get it done. We offer more than 10 different types of certificates that can help you to create milestones in your business sector.
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