It’s a known fact that a COVID19 has had a great impact on MSMEs. Most MSMEs are struggling hard to survive and many have shut down. As per this report by the ET, about 35% of the MSMEs in India have shut their shops.
To everyone’s relief, the World Bank on Wednesday said that it has approved a loan of $750Mn to increase the flow of finances in the Micro, Small and Medium enterprises in India. This will support the MSME Package announced by the Government of India under the Atmanirbhar campaign.
“The World Bank’s MSME Emergency Response programme will address the immediate liquidity and credit needs of some 1.5 million viable MSMEs to help them withstand the impact of the current shock and protect millions of jobs,” the multilateral lending institution said in a statement.
India’s MSME sector is the backbone to its economy contributing to about 30% of the GDP and employing more than a 100 million people. This sector is going through one of its worst phases and needs a booster immediately to keep the economy afloat.
More details can be read here.
Refrens.com’s thoughts on this
We concur on the fact that the MSME sector needs to be saved. They are facing multiple challenges of Labour, Cancelled orders, delayed payments, safety issues etc. We hope this and the previous package by the Government brings in the much awaited relief to this sector.
Other important business news for MSMEs, Startups and Freelancers in the week gone by
New Draft e-Commerce Policy by GoI. Read here in detail.
Improvement in Services PMI. Read here in detail.
How TikTok’s ban in India might impact influencers and brands. Read here in detail.
Our blog Ways to boost your business through Social Media has been widely appreciated in the circle, do give it a read as well.