Micro, small and medium enterprises (MSMEs) in India have been granted a host of benefits like a portal which is empowered to grant them loans of up to a crore in less than an hour.Access to credit, access to the market, technology upgradation, ease of doing business, and a sense of security for employees are some of the other benefits.
It is expected these will go a long way in mitigating the problems of small businesses. GST-registered enterprises will get a two per cent rebate on an incremental loan of up to a crore. The interest subvention on pre and post shipment credit for exports by micro, small and medium enterprises has been increased from three per cent to five per cent.
A Rs 6000 crore package has been announced for technological upgradation of these enterprises. About 20,000 hubs and 100 tool rooms will be developed around the country for this. Mandatory sourcing by PSUs from small enterprises has been increased to 25 per cent from the previous limit of 20 per cent.
Pucblic sector companies have to buy at least three per cent of their purchases from women entrepreneurs. All companies with a turnover of more than Rs 500 crores have to join the Trade Receivables e-Discounting System so that MSMEs don’t face troubles in cash flow.