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Economic package to help MSMEs, exporters: Industry

Jun 30, 2021
Economic package to help MSMEs, exporters: Industry

New Delhi

A slew of measures by the government as part of Rs 6.29 lakh crore economic package may give an impetus to growth and address severe cash flow crunch faced by businesses due to the second wave of the Covid pandemic.

The measures include Rs 1000 billion credit guarantee scheme for improving health infrastructure, and enhancing the limit under the ECLGS by 50 per cent to Rs 4500 billion for the MSME sector facing liquidity crunch.

Industry chamber PHDCCI said the measures will bring a broad-based economic recovery through enhanced demand, private investments, manufacturing competitiveness, exports, increased agricultural productivity and strong build-up of health infrastructure in non-metropolitan cities.

CII said the measures are expected to address the severe cash flow distress precipitated by the business disruptions caused by the lockdowns in the wake of second wave of the pandemic.

S K Saraf, former president of Federation for Indian Exports Organisations (FIEO), said that the measures would help in reviving the economic growth and boosting exports.

Council for Leather Exports (CLE) Chairman Sanjay Leekha said that the steps would help in growth of exports and the proposal to infuse equity in ECGC will provide the risk coverage.

Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said the decisions for additional provision for ECLGS and infusion of equity in Export Credit Guarantee Corporation (ECGC) over 5 years to boost merchandise export insurance cover will significantly benefit the MSMEs and exporters.

Industry body FICCI said that the direct support offered to the tourism and travel sector was much needed.

Vikash Agarwal, President of Indian Chamber of Commerce (ICC) said that this timely intervention will definitely provide a boost to several sectors.

Rupinder Malik, Partner, J Sagar Associates said extending Aatmanirbhar Bharat Rozgar Yojana till 31st March 2022 may prevent job losses in the low-income labour intensive industries.

Source: The Free Press Journal

Image Source: Google Images

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