‘MSMES WERE ABOUT TO DIE, OUR PACKAGE WILL ACT AS A BOOSTER DOSE’
Micro, small and medium enterprises (MSMEs) form the lifeblood of the Indian economy. With the Covid pandemic and the resultant lockdown pushing millions of India’s small businesses to the brink, the first tranche of Prime Minister Narendra Modi’s Rs 20 lakh crore package includes a slew of measures to support the sector that contributes nearly 29 per cent to the country’s GDP. Even as the government takes on a massive risk of underwriting loans worth Rs 3 lakh crore, the announcement has evoked a mixed reaction—while some economists have endorsed its ‘bang for the buck’, MSME bodies have expressed their disappointment with the failure of the measures to address their immediate concerns. Group Editorial Director and Deputy Editor spoke to Union minister of MSME and transport to find out if the measures are aimed at survival or revival. Excerpts from the interview:
