Budget Briefs: A shot in the arm for struggling MSMEs

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  1. Presenting the Budget 2019-20,the finance minister has unveiled a slew of initiatives and new provisions to tackle issues related to the Micro, Small and Medium Enterprises(MSME) sector in the country.
  2. The Finance Minister has announced that Rs 350 Crore will be allocated for 2% interest subvention for all GST registered MSMEs on fresh and incremental loans.
  3. The government has introduced a scheme for providing loans up to ₹1 crore within 59 minutes through a dedicated online portal.
  4. The Government has also announced to create a payment platform for MSMEs to enable filing of bills and payment on the platform itself to eliminate delays in government payments.
  5. Under the scheme named Pradhan Mantri Karam Yogi Maandhan Scheme,the government will extend pension benefits to about three crore retail traders and small shopkeepers whose annual turnover is less than ₹1.5 crore.Enrolment will be kept simple requiring only Aadhaar and a bank account.
  6. Under the Scheme of Fund for Upgradation and Regeneration of Traditional Industries (SFURTI),100 new clusters will be set up during 2019-20,enabling 50,000 artisans to join the economic value chain.
  7. SFURTI aims to set up Common Facility Centres(CFCs) to facilitate cluster-based development to make traditional industries more productive,profitable and capable for generating sustained employment opportunities.Focused sectors are Bamboo,Honey and Khadi clusters.
  8. Further,10,000 new Farmer Producer Organizations are proposed to be formed to ensure economies of scale for farmers,under the Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship’ (ASPIRE).