HOW INDIA IS PROTECTING MSME SECTOR FROM COVID-19

The MSME Sector is under severe condition due to the COVID-19 outbreak! The policymakers in India are swiftly making policies that can protect the MSME sector from its adverse effects.

The government needs to support the MSME sector during this period of crisis. And, that is the most important reason they are coming up with several policies and schemes to avoid the risks and loses.

When talking about the Indian economy, The MSME sector plays an important role. Therefore, it becomes important to provide urgent funds stimulus to MSME Sector Business owners along with the safety net.

Here is the list of schemes and policies that are formulated by the government to protect the MSME sector:

• Reserve Bank of India (RBI) has passed a list of COVID-19 operations and business continuity measures to all the commercial banks, non-bank financial companies, and payment banks.
• All financial companies instructed to maintain the list of the impact of coronavirus on balance sheets, liquidity, and asset quality.
• RBI recently announced a moratorium on term loans, which made it easier for the loan payers to defer their interest payments.

Here is the list of different policy frameworks that can be proposed for different

MSME sectors:

Undertake measure for easy access to loans/credits.

Undertake measures to minimize the impact on labors/workers

Undertake measures for business owners/self-employed

Undertake measures to defer utility and security payments

It is important for every business to create plans well in advance. Social distancing and quarantine measures are inaction by the government to prevent coronavirus cases in India. Slowly and gradually, all the business operations will restart with precautionary measures.

Although, the situations with COVID-19 are unpredictable. India is protecting MSME Sector through different policies and schemes to maintain the cash flow.

What Is MSME Registration? How Can You Take Full Advantage Of It?

Micro, Small, and Medium Enterprises (MSME) is the backbone of the Indian economy. MSME contributes greatly for socio and economic development.

MSME registration is important to avail of all the benefits that the ministry of Micro, Small, and Medium Enterprises has announced under the MSMED act.

MSME is classified under two categories i.e.

Manufacturing Group

Service Group

For MSME registration, you can simply visit their website https://msme.gov.in/online-application and fill the application form along with all required documents. Although, you can get in touch with the experts of Consult Avenue for MSME registration in India.

There is a registration procedure that every enterprise owner has to adhere to.

Step 1: The applicants are required to complete their MSME registration form and then submit all the documents as asked.

Step 2: Documents have to be prepared for MSME registration. This procedure takes 1 to 2 working days.

Step 3: Then you have to post the documents to the registrar. All the documents will be verified by the experts it will take another 2 working days.

Step 4: Once all the documents are approved and verified by the ministry, then your company will be registered and the important documents will be sent at your address.

It is important to know the eligibility criteria before you proceed into the entire registration process. Eligibility criteria for MSME registration.

-         As MSME is classified under two categories, one is manufacturing and the other is the Service sector. Therefore, for both the sectors there is a specific eligibility criterion that needs to be fulfilled.

-         For the manufacturing sector, their investment plan in plant and machinery should be less than 10 crores.

-         For the service sector, their investment plan in plant and machinery should be less than 5 crores.

Advantages of MSME Registration

Exemption on Income Tax

Great Credit and Low Interest Rates

Priority Lending

Infrastructure Development Capital

Credit Linked Guarantee Scheme

ISO Certification Reimbursement

Protection against delayed payments

Technological up-gradation

Patent Registration Subsidy

Interest on overdraft exemption

Reservation Policy

For company registration in Delhi, the experienced team of Consult Avenue is there to help!

HOW INDIA IS PROTECTING MSME SECTOR FROM COVID-19

The MSME sector is under severe condition due to the COVID-19 outbreak! The policymakers in India are swiftly making policies that can protect the MSME sector from its adverse effects.

The government needs to support the MSME sector during this period of crisis. And, that is the most important reason they are coming up with several policies and schemes to avoid the risks and loses.

When talking about the Indian economy, The MSME sector plays an important role. Therefore, it becomes important to provide urgent funds stimulus to MSME sector business owners along with the safety net.

Here is the list of schemes and policies that are formulated by the government to protect the MSME sector:

• Reserve Bank of India (RBI) has passed a list of COVID-19 operations and business continuity measures to all the commercial banks, non-bank financial companies, and payment banks.
• All financial companies instructed to maintain the list of the impact of coronavirus on balance sheets, liquidity, and asset quality.
•  RBI recently announced a moratorium on term loans, which made it easier for the loan payers to defer their interest payments.

Here is the list of different policy frameworks that can be proposed for different MSME sectors:

Undertake measure for easy access to loans/credits.

Undertake measures to minimize the impact on labors/workers

Undertake measures for business owners/self-employed

Undertake measures to defer utility and security payments

It is important for every business to create plans well in advance. Social distancing and quarantine measures are inaction by the government to prevent coronavirus cases in India. Slowly and gradually, all the business operations will restart with precautionary measures.

Although, the situations with COVID-19 are unpredictable. India is protecting MSME sector through different policies and schemes to maintain the cash flow.