Announces series of measures to spur growth in MSME sector
ANDALIB AKHTER / NEW DELHI
Prime Minister Narendra Modi today announced that every GST registered Micro, Small and Medium Enterprise, MSME, would be given a rebate of 2 percent interest on the amount of a new loan or incremental loan up to one crore rupees.
Announcing a series of measures during the launch of MSME Support and Outreach Programme here today, Mr Modi said, the government also decided to increase interest subvention on pre and post shipment credit for exports by MSMEs from 3 per cent to 5 per cent.
He said, loan of up to one crore rupees will be sanctioned for MSME sector in 59-minutes. Mr Modi said, all the companies which have a turnover above 500 million, will now be required to bring them on Trade Receivables e-Discounting System, so that MSMEs do not have problems in cash flow.
He said, due to reforms and landmark decisions taken by the Government, doing business in India has become very easy today. Mr Modi said, the World Bank’s Ease of Doing Business Ranking, which was released just two days ago, is the proof of it.
He said, Government has done a lot of work at the ground level and improved the rules to make the industry easier for MSMEs. He said, Ease of Doing Business increases the simplicity and convenience and MSME sector can get best advantage from it. He said, MSMEs are the second largest sector after agriculture. He said, India has become the Economic Powerhouse today because of MSME sector.
Lower interest, higher exports…a win-win for MSMEs.
Subvention benefits on incremental and new loans, higher shipment credit for GST registered MSMEs. pic.twitter.com/NOjttOwn2Z
— Narendra Modi (@narendramodi) November 2, 2018