Government considers easier loan, tax rules for MSMEs to help economy amid coronavirus
Parul March 24, 2020
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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.