Amid the fast-spreading coronavirus and declining economy, the Indian Government is thinking of another special stimulus package to help the needy.
This time, the package is more focused towards helping the struggling MSMEs, say the government officials.
Expected in the near future, the second round of stimulus package is likely to be worth Rs. 1 trillion (USD 13 billion).
Meanwhile, the government is also planning about another package for bigger companies after analyzing the situation and the impact.
Small businesses make up one-quarter of the Indian economy, employing more than 500 million personnel.
The new relief package includes increasing MSME loan limits for capital requirements, increasing threshold level for tax exemptions and relaxation of rules for income tax deposits and other dues.
As an immediate relief, the government is likely to partially clear the tax refund it owes to all SMEs within a month period.
The government has already announced Rs. 180 million tax refunds to small businesses and individuals, and place expenditure curbs on certain departments for the coming two months period.
Meanwhile, the All India Manufacturers Association (AIMA) urges the government to clear the long-pending dues accrued on sale of its products to central and state governments and state-run firms.
As per the stats, the state and center owe USD 66 billion to the small and medium businesses.
Around one-third of the AIMA members are unable to pay off salaries to their workers.
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