{"id":11442,"date":"2019-10-21T21:00:21","date_gmt":"2019-10-21T15:30:21","guid":{"rendered":"https:\/\/www.instamojo.com\/blog\/?p=11442"},"modified":"2021-06-07T02:14:14","modified_gmt":"2021-06-06T20:44:14","slug":"msme-schemes-small-business","status":"publish","type":"post","link":"https:\/\/www.instamojo.com\/blog\/msme-schemes-small-business\/","title":{"rendered":"Top MSME Schemes By Finance Minister Nirmala Sitharaman"},"content":{"rendered":"

Since joining the Government as the first female Finance Minister of India in May 2019,\u00a0<\/span>Nirmala Sitharaman has introduced several MSME schemes to boost small businesses in India.\u00a0We picked some of the top MSME schemes she introduced since taking office. <\/span><\/p>\n

India is set to become a $3 trillion economy by this year, and MSMEs are expected to contribute to a large chunk of it.\u00a0<\/span>The MSME sector contributes to one-third of India\u2019s GDP.\u00a0 The sector also provides employment for over 50 million Indians.\u00a0<\/strong><\/p>\n

In the 2019 Union budget, Nirmala Sitharaman and her government heavily focused on initiating MSME schemes that will benefit the sector.<\/span><\/p>\n

Increased lending and ease of credit access to small businesses<\/span><\/strong><\/p>\n

Currently, the overall finance demand by the MSME sector is around INR 87.7 Crores. This means small businesses require more capital to run daily operations.\u00a0<\/span><\/p>\n

Over the years, MSMEs struggled to get loans as they didn’t meet the eligibility criteria.<\/p>\n

In September, Sitharaman encouraged banks to increase public lending at a time when consumer demand slumped sharply. Today, b<\/span>anks are working with non-banking financial companies or NBFCs to increase public lending.\u00a0<\/span><\/p>\n

Under this scheme,\u00a0Nirmala Sitharaman emphasised that banks need not declare stressed MSMEs as Non-Performing Assets till March 31, 2020. Some banks also recast existing MSME debts.<\/strong><\/p>\n

Clearing dues owed to the MSME sector:\u00a0<\/strong><\/h2>\n

In order to support MSMEs financially and give them their credit back, Finance minister Nirmala Sitharaman has prompted banks who have sufficient liquidity to make efforts and ensure that large firms clear their dues to the MSME sector.<\/span><\/p>\n

The ministry aims to talk to large companies that owe MSMEs over INR 40,000 Crores.\u00a0<\/strong><\/span><\/p>\n

Bank officials are supposed to submit details to the finance ministry of:\u00a0<\/span><\/p>\n