homevideos Newseconomy NewsFinance minister announces stimulus package for MSME, NBFCs; here’s what experts say
Finance minister announces stimulus package for MSME, NBFCs; here’s what experts say
A day after Prime Minister Narendra Modi announced a Rs 20 lakh crore stimulus package to revive the economy, Finance Minister Nirmala Sitharaman laid out the details in a 90-minute press conference on Wednesday. This was the first instalment of the measures and the next two days will see more announcements.
A day after Prime Minister Narendra Modi announced a Rs 20 lakh crore stimulus package to revive the economy, Finance Minister Nirmala Sitharaman laid out the details in a 90-minute press conference on Wednesday. This was the first instalment of the measures and the next two days will see more announcements.
The measures announced today were collateral-free loans of Rs 3 lakh crore for MSMEs, a credit guarantee plan and a fund of funds with an initial corpus of Rs 10,000 crore. The definition of who qualifies as an MSME has also been expanded to include more companies. Furthermore, foreign companies will be kept out of government tenders worth up to Rs 200 crore in a bid to bolster local businesses.
Finance Minister also said that the stress on self-reliance does not mean India will look inwards or become isolationist. The government has also promised to clear all dues to MSMEs in 45 days. The Minister for MSMEs Nitin Gadkari last week had told CNBC-TV18 that this outstanding amount was a "large amount".
Finance minister also announced a Rs 30,000 crore liquidity facility to NBFCs, housing finance companies and micro finance companies. There is also a new credit guarantee scheme for NBFCs and cash-strapped power distribution companies which will get liquidity infusion of up to Rs 90,000 crore. Builders too will get more time to complete their projects. Businesses and workers will see a cut in EPF contribution to ensure more cash in their hands.
Finance Minister also announced a few tax measures including a cut in TDS and TCS along with the extension of the Vivad Se Vishwas Scheme to settle direct tax disputes till December 31.
The big question, however, is how will all this be financed. When asked about it, the finance minister said the borrowing plan which has been increased to Rs 12 lakh crore is one way. She promised to reveal more details after announcing more measures over the next few days.
CNBC-TV18’s Shereen Bhan spoke to Rathin Roy, director of NIPFP, Arvind Panagariya, former VC of Niti Aayog and Rajnish Kumar, chairman of SBI and discussed the impact of the measures announced by Sitharaman.
Watch this video for details
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha Elections 2024 | How critical is Phase-5 for both NDA and I.N.D.I.A
May 20, 2024 7:30 AM
Lok Sabha Election Phase 5 Voting Live Updates: Leaders, actors among early voters as 49 seats poll today
May 20, 2024 6:34 AM