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.