MSMEs get Rs 7K cr boost

NEW DELHI: The government has proposed a slew of measures in the Budget that will ease access to credit for micro, small and medium enterprises (MSMEs), while allocating over Rs 7,000 crore, its highest ever.

“Government will create a payment platform for MSMEs to enable filing of bills and payment thereof on the platform itself,” finance minister Nirmala Sitharaman said.

Besides, it has allocated Rs 350 crore in FY20 for a 2% interest subvention on fresh or incremental loans for all MSMEs registered under the GST regime. Allocation for the Prime Minister’s employment generation programme, the flagship scheme for job creation in the country, stood at Rs 2,327 crore, up 117% over the last two years.


Minister for MSMEs, Nitin Gadkari, said the budget announcements will help increase the sector’s contribution to India’s GDP to 50% over the next few years from 29% currently.