The government has introduced many relaxation policies in order to save the backbone of the country which is the micro, small and medium Enterprises during this COVID-19 pandemic. More than 50% of the job is generated from this industry and Enterprises that is why it is very important and essential for the government to introduce some policies which would help these Enterprises to survive this massacre. In this content, we have introduced many relaxation measures which the government has undertaken, problems the notice, and the measures suggested in order to help the MSME thrive and survive in this pandemic.
A stimulus program to provide assistance in the underlined Small and Medium Enterprise (SME) sector is currently being negotiated between the Ministry of Finance, the Prime Minister's Office (PMO) and the Ministry of MSME.
The pandemic of coronavirus created immense difficulties in the industry and the MSME business may be the next field that is so badly needed.
India addresses with unparalleled public safety and economic steps the impact of the regional COVID 19 pandemic. Support measures will mitigate irreversible harm to lives and livelihoods if adverse economic effects are high. Tiny, small, and medium-sized businesses are among other sectors of the economy that require urgent attention and funding.
What are the relaxation measures the government is taking?
"The talks aim to establish a full strategy for minimizing the [MSPE] sector's suffering, covering both financial and non-financial initiatives,"the sources said in their description of the package's future proposal.
In recent days, the Government has studied many industries and has conducted talks with stakeholders. After consultations, it was agreed that "MSMEs had an effect on various rates, like development, retail outlets, etc.," according to the report, which is why the government would take the highest priority.
What are the problems the government noticed?
Owing to the lockout, which erodes cash flow, the Government noticed other problems confronting MSMEs. The Finance Ministry told the PMO that the fund or popular pool should be used especially for micro end groups, the government's plan for MSMEs.
The fund once it is formed can be used to increase interest-free loans under some circumstances, in certain situations interest discounts and much more to continue a loop that was stuck.
What is the government proposing to this?
The government is proposing non-financial steps such as easing some procedural criteria and time limits, raising the deadline for compulsory procurement of the industry, demanding that States assist in building efficiency, disburse government or PSU dues.
The Minister kept stock of the measures taken in the sense of the pandemic in the sector in a formal discussion that lasted about two and a half hours. The ministry itself has also started to offer relief to workers and craftsmen engaged in the sector.
It has now been agreed to allocate Rs. 1000 per month from the Artisan Welfare Fund (AWF) Trust to any registered artisan. Furthermore, AWF donation to artisans' bank accounts in three installments has been rendered possible through Khadi institutions.
On 9 April, Finance Minister Nirmala Sitharaman was also invited by the Confederation of All India Traders (CAIT) to announce an opportunity package to the trading community to alleviate the repercussions of COVID-19.
The CAIT proposed a variety of measures, including a system of cash loans COVID-19 and merchants' and workplace compensation cover, policy incentives for the paying of salaries and employment, the rise of the Mudra loans from Rs 10 lakh to Rs 25 lakh, waiver of interest for three months after April, to raise the non-bank loans, CC and OD caps,
Presently, the nation is locked up until 14 April 2020. Commerce & export operations have been heavily affected, culminating in the closing of over seven crore companies working nearly forty crore people. CAIT also made a range of proposals for a tax exemption, license extension exemption, incentive incentives, debt-free moratoriums, deferred payment non-classification of NPA.
Covid-19 is an uncertain consequence situation. However, it is evident that the government and companies, whether big or small, would have to work closely to ensure employees are safe, remain able to handle threats in order to phase them out and plan for systemic shifts in their operations.
Our MSME registration website can help you register for relaxations and smoothly process your MSME registration during this pandemic. We are working 24/7 for your benefit and easy registration with us can help you get all these processes getting done on time and without any hassle so that you can focus on more important parts of your business.
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