The Union Cabinet is likely to discuss a special package for exporters, MSMEs and SMEs in a meeting scheduled on Wednesday. The central government’s top policy-formulating body, chaired by Prime Minister Narendra Modi, could approve a working capital loan facility for exporters as well as for the SME and MSME sectors, sources told Zee Business.
The proposal aims to strengthen small businesses through financial support, interest rate subsidies, loan restructuring and technology upgrades. Aligned with the government’s ‘Make in India’ and ‘Atmanirbhar Bharat’ drives, the package is expected to benefit millions of MSME units.
Zee Business had reported that a Cabinet approval was likely soon for a proposed package worth Rs 20,000 crore aimed at boosting exports and small businesses.
Over the years, the central government has taken a host of measures aimed at strengthening and promoting the credit support, formalisation, skill development, innovation, market access, gender inclusion, and cooperation in the SME and MSME space.
With more than six crore enterprises, the MSME sector forms a vibrant and dynamic part of the country’s economy, second only to agriculture in employment generation at comparatively low capital cost. The Ministry of Micro, Small & Medium Enterprises promotes growth in the space through credit, technology, infrastructure, skill development, competitiveness and market assistance.
The government’s credit schemes, like PMEGP and SRI Fund provide subsidies, margin money and equity funding to micro-enterprises, driving employment generation.
IFCL update
It may also clear a proposed initial public offer by India Infrastructure Finance Company (IIFCL), the sources added.
A public sector undertaking (PSU), India Infrastructure Finance Company has announced its intention to launch an IPO.
IIFCL is a government-owned financial institution that caters to the long-term financing needs of the country’s infrastructure space.
It is among the most diversified PSU infrastructure lenders in terms of eligible infrastructure sub-sectors and product offerings, and active in providing policy inputs in the infrastructure financing space to the central government through various forums.
Source link
[ad_3]
