“The finance minister’s decision to supplement the ailing agricultural sector is indeed a commendably far-sighted one. In order to salvage and revive the faltering sector, the projected injection of Rs 30,000 crores as additional emergency working capital fund for farmers through NABARD will surely go a long way in uplifting the dejected state of the agro-economy. There is been a special support provided to migrant laborers by providing affordable renting housing complex. The overarching stress on shifting from offline modes of operation to online digital mediums will help create additional employment opportunities for white-collar migrants through Work From Home from their respective hometowns. As the rural ecosystem constitutes a major bulk of the national GDP, it is essential to rescue it from the perils of the pandemic. The Government of India’s timely effort in this direction is most laudable. The overall economic boosters through the various packages provided by the government only assure that Indian economy will bounce back on its GDP in a very short time through Aatma Nirbhar Bharat Package making India self-reliant” –
Avadhut Thali, Executive Director, Spocto
“The Finance Minister’s declaration today arrived as a much-needed respite for aching souls, the proverbial silver lining in cloudy skies. The eagerly anticipated decision to proffer a 20 Lakh Crore bail-out package to the poor laborers, the SME’s, MSME’s and other ailing sectors is a visionary move on the central government’s part. Moreover, the provision of collateral-free loans worth Rs 3 Lakh Crore for MSME’s and will prove to be a timely panacea for the small enterprises that constitute the very backbone of India Inc. Also, the Prime Minister’s call for the country and its citizens to attain self-reliance in every aspect is most appreciable. We are filled with immense gratitude towards the government’s notable incentives and hope the whole of the Indian corporate and banking sector, both the public, as well as the private, will join hands to rescue the country from this perilous situation”
Sumeet Srivastava, CEO & Founder, Spocto
Mumbai based product development company that built video conferencing product ‘Say Namaste’
Prime Minister’s call for Aatma Nirbhar Bharat and our Finance Minister’s announcement on the Rs 20 lakh crore package has come at a time helping MSMEs survive the Covid-19 wave. With major tax reliefs, a revised MSME definition, similar benefit brackets for manufacturing and service MSMEs, the govt. has created a pathway to ease doing business. Also, Global tenders up to Rs 200 crores being disallowed in Government procurement tenders will give Indian companies and products such as SayNamaste a big boost to participate and maybe even win lucrative government contracts. We hope the procedure to avail these services and benefits are less complicated.
Anuj Garg, co-founder and CEO, Inscripts
The government has come up with some good policies to support MSMEs in these dire economic times, and it’s heartening to see openness to leveraging fin-tech to enhance transaction-based lending using data. It will be important that the policies & processes to avail the schemes are also well-defined and hassle-free for the enterprises so that these initiatives translate into activity on the ground as soon as possible.
Ankur Mittal, Co-Founder, Inflection Point Ventures
Mumbai based Cybersecurity CompanyThe fiscal package announced today by the FM is a comprehensive one as it addresses the root of the problem being faced by small and medium companies which is cash flow and working capital issues. The collateral-free loan which is essentially an emergency line of credit will help SMEs infuse fresh capital into the system and resume their operations as we slowly come out of the Covid 19 led lockdown. A long-standing request of the industry to remove distinction between manufacturing and service business have also been addressed which will further make ease of doing business better. The major announcement for startups like ours is the fund of funds which is Rs 10,000 crore will help new-age companies acquire a much-needed runway.
Pankit Desai, co-founder & CEO, Sequretek Checkout Pankit Desai,Exclusive story to Techiexpert
We appreciate the robust set of measures announced by FM Nirmala Sitharaman aimed at providing relief to small businesses, non-banking financial firms, etc. It’s a great step by the government to support the dipping economy during this distressing time. The announcement by FM of INR 50,000 crore equity infusion for MSMEs through fund of funds will surely help small businesses resume their pace. This announcement on loans, TDS by the government will further help in maintaining economic stimulus.
By Ravish Naresh, CEO Khatabook
“The government’s announcements are significant steps in easing the economic pain for MSMEs. As the economy comes back to life over coming weeks, arranging liquidity and meeting expenses will be key challenges for every MSME. The package announced yesterday is unprecedented in both magnitude and the mechanism.
The 3 lac crore package will enable immediate access to additional lines from Banks to MSMEs. The 1 year moratorium will ensure that SMEs can focus on immediate exigencies and bring their business back to life and not worry about interest and repayments. A sovereign backing of this scale has not been done earlier. Given the high NPA levels, the additional support to stressed MSMEs through fund and equity participation is promising, however the execution details need to be seen.
The change in MSME definition to allow for higher investment and turnover is a welcome step as it will allow more enterprises to get included in the MSME setup and get access to cheaper financing and relieve packages. The market did expect a even wider definition and easier process, but some progress had been made.
The 30,000 crore backing to Banks for extending lines to NBFCs and Housing Finance companies will enable a trickledown effect and spur them to finally start lending again.”
Mr. Ram Iyer – Founder & CEO, Vayana Network Checkout Ram’s Exclusive story to Techiexpert