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Economic relief package ‘frivolous and gimmicky,’ say MSME bodies
The Modi government’s much-awaited stimulus including collateral free loans of up to Rs 3 lakh crore has failed to impress micro, small and medium enterprises (MSMEs) with industry bodies terming it frivolous and gimmicky.
Announcing relief for MSME sector as part of Rs 20 lakh crore stimulus to tide over coronavirus crisis and boost economy, Finance Minister Nirmala Sitharaman… also announced Rs 20,000 crore subordinate debt for stressed MSMEs which would cover 2 lakh businesses.
The smaller firms, however, expressed disappointment and said that they were expecting salary support for their workers and staff in the absence of cash flow which is expected to remain minimal as orders have dried up and demands plummeted.
