Aatmanirbhar Bharat initiative to extend a helping hand to MSME’s

The on-going COVID-19 pandemic has bought the world to a standstill. Even India has been under lockdown for more than four months now. The economic pressure is slowly mounting as businesses pose a bigger challenge.

With the market being at its all-time low, many businesses are forced to shut down their operations. Even companies are sacking off most of their manforce to sustain the expenses during this time. While some companies are even working with less than half of their workforce to keep the operations going.

Keeping all this in mind, the Government of India has come up with lucrative steps to help the MSME’s business owners. Under this plan, starts up can get additional funding and liquidity of around Rs. 3 lakh crores. The Aatmanirbhar Bharat package also provides credit facilities with a 100% credit guarantee.

This is an initiative to help businesses under a lot of stress due to the current pandemic. It also helps companies that are looking for some sort of funding to sustain their operations. There are various kinds of measures that have been announced by the government to help MSMEs. Some include collateral-free loans, subordinate debt for MSMEs, and a corpus of around Rs. 10,000 crores.

What does SME stand for?(एसएमई किस लिए खड़ा है?)

First of all know the acronym for SME. It means Small and Medium Enterprises. For society, it provides employment opportunity, exports, and provides economic growth for our country. No wonder to say that they are the backbone of our country.  It contributes 45% of total industrial production. Other than this, it also contributes to exports and contributes to the GDP significantly.

In the domestic sector, it is contributing to the following areas:

·         Business advisory services

·         Business, supply and procurement opportunities

·         Connectivity with buyers, manufacturers, and supplies

·         Procurement support in PSUs and MNCs

·         Marketing and distribution in India

·         Certification of evaluation of the capacity of the company

·         Support for listing on SME stock exchange

·         Identifying potential investors and business partners

·         Setting up manufacturing units

·         Redressal of issues and problems of industry

Other than this they also contribute of the field of finance and also in international business opportunities. If you become a member of the association formed by them you have the following privileges

·         You can become member of the premier organisation

·         Starting thoughts and suggestions on policy implementation

·         Opportunity to be a member of expert committees

·         Opportunity to provide the membership of expert committees

·         You will get the mentorship advice for SMEs, start-ups, young and women entrepreneurs

·         Sharing of articles and experience

·         You can make your own visiting cards, website, company profile, and promotional material

Thus, it is ideal to start your own SMEs. Be your own boss.

How many SMEs are there in India?(भारत में कितने एसएमई हैं?)

Before getting to know how many SMEs are there, you should know first of all what SME is. SME is the abbreviation of Small and Medium Enterprises. Of late, SMEs are booming and has become an important sector. It provides employment opportunities, innovation, exports, and also contributes to the economy.

The government has formulated an act that enables the SME so that it gets the environment for promotion and development for the sector. They also provide credit to these SMEs. In case of delayed payment, they act as a cover to get the payments. The ministry set-up for them understands their problem and stands by them for removing all the impediments.

If you see globally also, SMEs are thriving but the rules for them differ from one jurisdiction to another i.e. based on the government. However, on checking most of the countries follow the same rules and regulations. Normally, SMEs are decided based on the number of people working for a particular organization. Currently, in India, the SMEs are determined based on the plant and machinery and equipment. The total number of SMEs in India is 42.50 and contributes to 45% of total industrial units. Further to encourage these SMEs, the government is coming up with new criteria for them. In case, any lost their job or want to be their own boss then they can try for SMEs.

 

 

Atma Nirbhar Uttar Pradesh Rojgar Abhiyan

On 26^th June, 2020, Prime Minister Narendra Modi launched ‘Atma Nirbhar Uttar Pradesh Rojgar Abhiyan.’ This campaign will provide employment to almost 1.25 crore migrant workers and other people of Uttar Pradesh who lost their jobs due to the COVID 19 pandemic.

Atma Nirbhar Uttar Pradesh Rojgar Abhiyan was launched by the Prime Minister virtually and is expected dto cover 31 Uttar Pradesh districts. Based on reports, more than 30 lakh migrant workers returned home in these districts following the lockdown in India.

COVID 19 Effect On Indian Economy

There has been great depression, dot com bubble, and the financial crash in 2008. Just like that now, covid19 is causing havoc in the Indian economy. The next twelve months will be crucial during this period; many changes will be there with peoples, business houses, economies, etc. Some might even die. But at the same time, there will be many new businesses that will come up when this gets over. However, many people, as of now, struggle to run the family now. Many prices have increased. But in some cases, the people have lost their livelihood.

Most of the financial professionals have predicted this pandemic, and the multi-phased lockdown will spell devastation on the Indian economy, which is nothing but the truth. Though the scenario is pathetic, the International Monetary Fund (IMF) predicts the growth percent for 20-21 as 1.9 percent. It is appreciable that the Indian Government is spending on healthcare measures by supporting wages, in-kind, and cash transfers to lower-income and deferral of tax, loans, and liquidity for small businesses and financial institutions.

 Indian economy itself is in a lousy condition, and now this COVID 19 has made it pathetic. The prolonged lockdown will make a global economic downturn and associated problem in the supply chain. Only people need to wait and watch how it all goes.