The new economic package would provide significant liquidity to the MSMEs to take care of their cash needs.
Economic relief package 2.0 is under planning and can be out as soon as the lockdown ends. The package is being prepared with keeping in mind the grim situation faced by the country’s MSME sector, Chief Economic Advisor Krishnamurthy Subramanian said today. The new package would provide significant liquidity to the MSMEs to take care of their cash needs, CEA Subramanian said in an interview with CNN-News18. He added that the government is using this time under lockdown to come out with a well-considered economic package without any hurry. The country is under lockdown since the last week of March and is expected to end on May 3.
As more than 60 per cent economic activities are completely shut down, the fear of survival has engulfed many businesses and industries. To provide some cushion amid this time of distress, the Reserve Bank of India and the Finance Ministry, both have come up with relief measures. The RBI announced steps such as cut in repo rate, TLTRO 2.0, and support for realty and NBFC sectors, the centre announced an economic relief package.
In the earlier mega economic package of Rs 1.7 lakh crore, the Ministry of Finance announced a Rs 50 lakh insurance per health worker. Daily wages under the MNREGA was also increased to Rs 202 a day from Rs 182, benefitting nearly 5 crore families; 80 crore poor people to get 5 kg wheat or rice and 1 kg of preferred pulses for free every month for the next three months under the Pradhan Mantri Garib Kalyan Ann Yojana and over 20 crores PM JAN Dhan Yojana women account-holders were to be given an ex-gratia of Rs 500 per month for next three months.