Strong Impetus On MSME Sector: PM Modi Announces Stimulus Package


Prime Minister Narendra Modi on May 12 announced a much-awaited Rs 20 lakh crore (20 trillion) stimulus package while giving away that the stimulus will be for MSME’s. The PM said the Rs 20-trillion package, nearly 10 per cent of India’s gross domestic product (GDP), would be with the objective of putting money into people’s pockets to spur domestic consumption and demand. The package would cater to various sections, including the cottage industry, micro, small and medium enterprises (MSMEs), labourers, and middle class.

Primarily, the MICE industry also falls under MSME sector. Nitin Gadkari, the Union Minister MSME, also recently addressed the event industry and appealed all organisations to register under MSME.

India MICE Alliance that brings together various stakeholders on one platform to reflect common voice also aims to focus on MSME, MOC and MOT simultaneously to gain maximum possible traction. To read more about India MICE Alliance, please click here:

He also pointed that Lockdown 4.0, which would be implemented post May 17, would be very different from what we have seen so far. The details of both — the package and the next phase of the lockdown— would be unveiled during the week.

Officials involved in discussions on the mega-package said the announcements by the FM starting Wednesday would be two pronged. There would be fiscal measures, which would directly come out of the government’s expenditure and aimed at citizens and beneficiaries. These could include increasing the quantum and scope of cash handouts to the poorest through direct benefit transfers. The fiscal measures could also include tax benefits for some of the most affected sectors, and benefits for companies, especially MSMEs, to retain employees and maintain workforce.

The second aspect could be on the liquidity side including a credit guarantee scheme for working capital loans of MSMEs. There could be steps to provide additional credit for sectors like aviation, services, tourism, logistics, hospitality and others, which have faced the brunt of the lockdown rather hard. The PM said the stimulus package would help the country achieve the objective of self-reliance through five pillars–an economy geared for quantum jumps, not incremental changes; modern infrastructure; technology driven systems and processes; demography; and a strong demand and supply chain.