Present state of MSME Sector and Relief Measures

Reform measures undertaken by the Government under the Atmanirbhar Bharat mission has provided a much-needed structural shift in the MSME sector in terms of market opportunities and government support. Reform measures for the MSME sector are listed below:

  • Emergency Credit Line Guarantee Scheme (ECLGS) has played a major role in the revival of economic activity by providing timely access to credit. The overall cap of ECLGS has been raised from ₹3 lakh crore to ₹4.5 lakh crore. Under ECLGS, ₹2.73 lakh crore has been sanctioned and ₹2.10 lakh crore disbursed6.
  • ₹20,000 crore subordinate debt with partial credit guarantee support to be extended to NPA/ stressed MSMEs.
  • Upto ₹200 crore global tenders for government procurement disallowed to support Make in India.
  • ₹1.10 lakh crore loan guarantee scheme for COVID affected sectors, of which ₹50,000 crore to be for health sector and ₹60,000 crore for other sectors including tourism.
  • Equity infusion in ECGC over a 5-year period to boost export insurance cover by ₹88,000 crore.
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RBI Relief Measures for MSME Sector