Government considers easier loan, tax rules for MSMEs to help economy amid coronavirus

India likely to offer easier loan repayment in terms and tax breaks for small-and medium-sized companies to help weather the onslaught of the novel coronavirus.

   
Coronavirus impact

As per news reports, India likely to offer easier loan repayment in terms and tax breaks for small-and medium-sized companies to help weather the onslaught of the novel coronavirus. Reports also claim that the Finance Ministry is considering extending loan tenors and relaxing bad-debt norms for small firms.

Prime Minister Narendra Modi’s administration is under pressure to shield the $2.7 trillion economy from the impact of the virus outbreak at a time when expansion is already poised for its weakest pace in more than a decade.

In fact, countries, including the U.S., China and Indonesia, have announced plans to spend billions of dollars to stem a slide in growth. Authorities around the world are acting to pre-empt a crisis, focusing on keeping households, small businesses and industries afloat rather than let their economies slip into a recession.

As per the government data, the micro small- and medium-sized businesses that employ more than 100 million people and account for 45% of factory output and over 40% of the nation’s exports are under worry.  






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