Parul
As per reports, the government is discussing ways to boost consumer demand in the economy, with one option being the possibility of providing salary support of up to Rs 1 lakh crore over the next three years to MSMEs which employ a certain minimum number of employees, as a way to boost demand in the economy.
At present there are close to 6 crore MSME’s in the country and they form the backbone of the economy. It is reported that a minimum number of employees hired by the unit could serve as selection criteria and the support could be extended for up-to three years.
MSME’s have been at the core of financial package of the Modi government, which in May announced a Rs 3 lakh crore emergency credit line guarantee scheme (ECLGS) under which 100 per cent guarantee coverage will be provided by the National Credit Guarantee Trustee Company for additional funding of up to Rs 3 lakh crore to eligible MSMEs.
In fact, the finance ministry has stated that banks have sanctioned loans of about Rs 1.2 lakh crore under ECLGS. However, disbursements against this stood at a little over 61,000 crores.
