Dr Sunil Rai, Vice-Chancellor, University of Petroleum and Energy Studies, talks about the impact of coronavirus on various sectors, like Oil and Gas, Banking, MSMEs, Agriculture, and how can they overcome the economic fallout.

Video Opinion: What can various sectors do to overcome the economic impact of coronavirus

Finance minister Nirmala Sitharaman announced today that MSME definition has been changed to allow units with investment up to Rs 1 crore to be called micro-units in place of Rs 25 lakh now.

<a href="https://www.wionews.com/business-economy/government-extends-deadline-to-file-income-tax-returns-till-november-30-298473">Also Read:&nbsp;Government extends deadline to file income tax returns till November 30</a>

Also, units with turnover of up to Rs 5 crore would be called "micro-units", she said, adding a turnover based criteria is being introduced to define small businesses.

The investment and turnover limits for small businesses has&nbsp;been raised to Rs 10 crore and Rs 50 crore respectively.

<a href="https://www.wionews.com/india-news/governments-financial-package-big-relief-for-msmes-indian-taxpayers-298416">Also Read:&nbsp;Government's financial package: Big relief for MSMEs, Indian taxpayers</a>

The finance minister said units with an investment of up to Rs 20 crore and turnover of up to Rs 100 crore will qualify as medium-size enterprise.

"The steps announced will boost liquidity, empower the entrepreneurs and strengthen their competitive spirit," India's Prime Minister Modi said.

Sitharaman announced Rs 3 lakh crore collateral-free automatic loan for businesses, including MSMEs.

"It will benefit 45 lakh small businesses," the finance minister said.

"Today's announcements by FM Sitharaman will go a long way in addressing issues faced by businesses, especially MSMEs," PM Modi added.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
Today’s announcements by FM <a href="https://twitter.com/nsitharaman?ref_src=twsrc%5Etfw">@nsitharaman</a> will go a long way in addressing issues faced by businesses, especially MSMEs. The steps announced will boost liquidity, empower the entrepreneurs and strengthen their competitive spirit. <a href="https://twitter.com/hashtag/AatmaNirbharBharatAbhiyan?src=hash&amp;ref_src=twsrc%5Etfw">#AatmaNirbharBharatAbhiyan</a>
— Narendra Modi (@narendramodi) <a href="https://twitter.com/narendramodi/status/1260559627982442497?ref_src=twsrc%5Etfw">May 13, 2020</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

Union Home Minister Amit Shah said the Narendra Modi government is committed to reviving the economy, help small businesses and boost employment.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
I thank PM <a href="https://twitter.com/narendramodi?ref_src=twsrc%5Etfw">@narendramodi</a>’s government for infusing liquidity of Rs 90,000 crore in DISCOMs, providing Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs and Rs 50,000 crore liquidity through TDS/TCS rate reduction. <a href="https://twitter.com/hashtag/AatmaNirbharBharatAbhiyan?src=hash&amp;ref_src=twsrc%5Etfw">#AatmaNirbharBharatAbhiyan</a>
— Amit Shah (@AmitShah) <a href="https://twitter.com/AmitShah/status/1260557561859674112?ref_src=twsrc%5Etfw">May 13, 2020</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

"I thank PM @narendramodi and FM @nsitharaman for these unprecedented steps, targeted at assisting MSMEs, cope with challenges of COVID-19," India's home minister said, adding, "it reflects PM Modi's commitment to revive our economy, help small businesses and boost employment," he tweeted.

(With PTI inputs)

Finance minister Nirmala Sitharaman announced today that MSME definition has been changed to allow units with investment up to Rs 1 crore to be called micro-units in place of Rs 25 lakh now.

Finance minister Nirmala Sitharaman announced today that MSME definition has been changed to allow units with investment up to Rs 1 crore to be called micro-units in place of Rs 25 lakh now. Also Read: Government extends deadline to file income tax returns till November 30 Also, units with turnover of up to Rs 5 crore would be called "micro-units", she said, adding a turnover based criteria is being introduced to define small businesses. The investment and turnover limits for small businesses has been raised to Rs 10 crore and Rs 50 crore respectively. Also Read: Government's financial package: Big relief for MSMEs, Indian taxpayers The finance minister said units with an investment of up to Rs 20 crore and turnover of up to Rs 100 crore will qualify as medium-size enterprise. "The steps announced will boost liquidity, empower the entrepreneurs and strengthen their competitive spirit," India's Prime Minister Modi said. Sitharaman announced Rs 3 lakh crore collateral-free automatic loan for businesses, including MSMEs. "It will benefit 45 lakh small businesses," the finance minister said. "Today's announcements by FM Sitharaman will go a long way in addressing issues faced by businesses, especially MSMEs," PM Modi added. Today’s announcements by FM @nsitharaman will go a long way in addressing issues faced by businesses, especially MSMEs. The steps announced will boost liquidity, empower the entrepreneurs and strengthen their competitive spirit. #AatmaNirbharBharatAbhiyan — Narendra Modi (@narendramodi) May 13, 2020 × Union Home Minister Amit Shah said the Narendra Modi government is committed to reviving the economy, help small businesses and boost employment. I thank PM @narendramodi’s government for infusing liquidity of Rs 90,000 crore in DISCOMs, providing Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs and Rs 50,000 crore liquidity through TDS/TCS rate reduction. #AatmaNirbharBharatAbhiyan — Amit Shah (@AmitShah) May 13, 2020 × "I thank PM @narendramodi and FM @nsitharaman for these unprecedented steps, targeted at assisting MSMEs, cope with challenges of COVID-19," India's home minister said, adding, "it reflects PM Modi's commitment to revive our economy, help small businesses and boost employment," he tweeted. (With PTI inputs)

Government changes definition of MSMEs; PM Modi says will 'empower entrepreneurs'

Union Minister Nitin Gadkari on Saturday said that Micro, Small and Medium Enterprises (MSMEs) will play an important role in the job creation in the country.

Speaking at 'Laghu Udyog Bharati Rashtriya Adhiveshan'&nbsp;here, Gadkari said,&nbsp;"There are six crore MSMEs in the country. Out of them, 2 crore units have not registered themselves as MSME as of now. Till now 11.5 crore people have got employment in this sector. We have set a target of 5 crore new jobs from this sector."

"We have to work on achieving the target of becoming 5 trillion dollar economy set by Prime Minister Narendra Modi. In the GDP growth, 29 per cent growth belongs to MSMEs. In export, there is 40 per cent contribution of MSMEs," Gadkari said.

The Minister of Micro, Small and Medium Enterprises said, "We have to increase our export and limit the import. We have to do maximum capital investment in MSME sector to create job opportunities."

He spoke people living villages. "Today 65 per cent people live in rural areas. At the time of Mahatma Gandhi, 80 per cent of people lived in rural areas."So we also have to think about reforms in rural sector which include agriculture, handlooms, handicrafts and agro-processing industries," he added.&nbsp;

 
&nbsp;

Union Minister Nitin Gadkari on Saturday said that Micro, Small and Medium Enterprises (MSMEs) will play an important role in the job creation in the country. Speaking at 'Laghu Udyog Bharati Rashtriya Adhiveshan' here, Gadkari said, "There are six crore MSMEs in the country.

Union Minister Nitin Gadkari on Saturday said that Micro, Small and Medium Enterprises (MSMEs) will play an important role in the job creation in the country. Speaking at 'Laghu Udyog Bharati Rashtriya Adhiveshan' here, Gadkari said, "There are six crore MSMEs in the country. Out of them, 2 crore units have not registered themselves as MSME as of now. Till now 11.5 crore people have got employment in this sector. We have set a target of 5 crore new jobs from this sector." "We have to work on achieving the target of becoming 5 trillion dollar economy set by Prime Minister Narendra Modi. In the GDP growth, 29 per cent growth belongs to MSMEs. In export, there is 40 per cent contribution of MSMEs," Gadkari said. The Minister of Micro, Small and Medium Enterprises said, "We have to increase our export and limit the import. We have to do maximum capital investment in MSME sector to create job opportunities." He spoke people living villages. "Today 65 per cent people live in rural areas. At the time of Mahatma Gandhi, 80 per cent of people lived in rural areas."So we also have to think about reforms in rural sector which include agriculture, handlooms, handicrafts and agro-processing industries," he added.

MSMEs will play important role in job creation: Nitin Gadkari

Reserve Bank of India(RBI) board <a href="http://www.wionews.com/india-news/govt-pressure-on-rbi-will-become-abundantly-clear-in-monday-meeting-board-members-178018">members N Chandrasekaran along with</a> other members are meeting today amid reports of government pushing for massive capital transfer from India's central banker.

On Saturday, finance minister Arun Jaitley had said that growth must not be "throttled" by limiting credit availability and liquidity. The government is pressing for the creation of a special liquidity window for the troubled non-bank lending sector, liberalising prompt corrective action that restricts normal lending and easier credit supply for small businesses.

The government also wants relaxation in the Prompt Corrective Action (PCA) framework for weak banks and the appropriate size of reserve to be maintained by the central bank.

Economic Affairs Secretary Subhash Chandra Garg had said earlier the government is seeking "appropriate economic capital framework of RBI".

The RBI has repeatedly said it wouldn't yield the government's demands. Reports had suggested in the past week that the government was considering using Section 7 of the RBI Act through which it can direct policy moves to be undertaken by the RBI in "public interest".

"It is necessary that the growth process does not suffer due to the cleaning up of the banking system from the "collectively committed sins" during 2008-14 when the regulatory mechanisms also overlooked high debt accumulation," finance minister Jaitley had said while taking a dig at the central banker and the previous UPA government.

Reports had said the RBI is likely to agree to easing of lending norms for MSMEs to improve credit flow. The central bank is also expected to consider special dispensation for the MSME sector and non-banking financial companies (NBFCs) which have been facing liquidity issues.

Both the government and the RBI have been at loggerheads over several issues with top government officials openly accusing the central bank of stifling India's growth by not releasing capital to spur the economy at a time when oil prices have been going down steadily once again.

RBI Governor Urjit Patel is scheduled to appear before a parliamentary panel on November 27 to brief it on various issues, including the stand-off with the government, status of the economy and demonetisation.

Reserve Bank of India(RBI) board members N Chandrasekaran along with other members are meeting today amid reports of government pushing for massive capital transfer from India's central banker.

Reserve Bank of India(RBI) board members N Chandrasekaran along with other members are meeting today amid reports of government pushing for massive capital transfer from India's central banker. On Saturday, finance minister Arun Jaitley had said that growth must not be "throttled" by limiting credit availability and liquidity. The government is pressing for the creation of a special liquidity window for the troubled non-bank lending sector, liberalising prompt corrective action that restricts normal lending and easier credit supply for small businesses. The government also wants relaxation in the Prompt Corrective Action (PCA) framework for weak banks and the appropriate size of reserve to be maintained by the central bank. Economic Affairs Secretary Subhash Chandra Garg had said earlier the government is seeking "appropriate economic capital framework of RBI". The RBI has repeatedly said it wouldn't yield the government's demands. Reports had suggested in the past week that the government was considering using Section 7 of the RBI Act through which it can direct policy moves to be undertaken by the RBI in "public interest". "It is necessary that the growth process does not suffer due to the cleaning up of the banking system from the "collectively committed sins" during 2008-14 when the regulatory mechanisms also overlooked high debt accumulation," finance minister Jaitley had said while taking a dig at the central banker and the previous UPA government. Reports had said the RBI is likely to agree to easing of lending norms for MSMEs to improve credit flow. The central bank is also expected to consider special dispensation for the MSME sector and non-banking financial companies (NBFCs) which have been facing liquidity issues. Both the government and the RBI have been at loggerheads over several issues with top government officials openly accusing the central bank of stifling India's growth by not releasing capital to spur the economy at a time when oil prices have been going down steadily once again. RBI Governor Urjit Patel is scheduled to appear before a parliamentary panel on November 27 to brief it on various issues, including the stand-off with the government, status of the economy and demonetisation.

RBI board members meet as government seeks credit, liquidity

Finance Minister Arun Jaitley Tuesday hit out at former RBI governor Raghuram Rajan for predicting that the next banking crisis would be triggered by MSME lending, saying postmortem is easier than taking action when it was required.

Rajan, who had as the chief economist at IMF warned of impending financial crisis of 2008, in a note to a parliamentary committee warned against ambitious credit targets and loan waivers, saying that they could be the sources of next banking crisis.

"I think for anyone to do postmortem is easier than action when it was required," Jaitley said when asked to comment on Rajan's view about MSME to be next source of crisis for the banking sector.

"Government should focus on sources of the next crisis, not just the last one. In particular, the government should refrain from setting ambitious credit targets or waiving loans. Credit targets are sometimes achieved by abandoning appropriate due diligence, creating the environment for future NPAs," Rajan said in the note.&nbsp;

"Both MUDRA loans as well as the Kisan Credit Card, while popular, have to be examined more closely for potential credit risk. The Credit Guarantee Scheme for MSME (CGTMSE) run by SIDBI is a growing contingent liability and needs to be examined with urgency," he had said in the note submitted to the committee headed by Murli Manohar Joshi.&nbsp;

Rajan also said that a list of high profile cases related to banking frauds was sent to the Prime Minister's Office (PMO) for a coordinated action.

Rajan, who was RBI governor for three years till September 2016, is currently teaching at the Chicago Booth School of Business.

Finance Minister Arun Jaitley Tuesday hit out at former RBI governor Raghuram Rajan for predicting that the next banking crisis would be triggered by MSME lending, saying postmortem is easier than taking action when it was required.

Finance Minister Arun Jaitley Tuesday hit out at former RBI governor Raghuram Rajan for predicting that the next banking crisis would be triggered by MSME lending, saying postmortem is easier than taking action when it was required. Rajan, who had as the chief economist at IMF warned of impending financial crisis of 2008, in a note to a parliamentary committee warned against ambitious credit targets and loan waivers, saying that they could be the sources of next banking crisis. "I think for anyone to do postmortem is easier than action when it was required," Jaitley said when asked to comment on Rajan's view about MSME to be next source of crisis for the banking sector. "Government should focus on sources of the next crisis, not just the last one. In particular, the government should refrain from setting ambitious credit targets or waiving loans. Credit targets are sometimes achieved by abandoning appropriate due diligence, creating the environment for future NPAs," Rajan said in the note. "Both MUDRA loans as well as the Kisan Credit Card, while popular, have to be examined more closely for potential credit risk. The Credit Guarantee Scheme for MSME (CGTMSE) run by SIDBI is a growing contingent liability and needs to be examined with urgency," he had said in the note submitted to the committee headed by Murli Manohar Joshi. Rajan also said that a list of high profile cases related to banking frauds was sent to the Prime Minister's Office (PMO) for a coordinated action. Rajan, who was RBI governor for three years till September 2016, is currently teaching at the Chicago Booth School of Business.

Jaitley hits out at Rajan for MSME banking crisis statement

The national policy for the micro, small and medium enterprises (MSMEs), which seeks to boost the overall growth of the sector, is expected to be released by the end of this year.

 
MSME Minister Kalraj Mishra said a committee headed by former Cabinet Secretary Prabhat Kumar is drafting the policy and &quot;we are expecting the report by October 31 and it would be released after that&quot;. 
 
The committee would meet some more stakeholders for the proposed policy and they are also looking at policies of other countries, Mishra&nbsp;added. 
 
&quot;We want a detailed policy for MSMEs,&quot; Mishra&nbsp;said while briefing&nbsp;about the achievements of his ministry during the two years of the NDA government.&nbsp;A committee will be set up by the end of this month to look after the revival and rehabilitation of sick MSME units, he added. 
 
At present, there is no integrated approach for the development of MSMEs despite the fact that the sector accounts for 45 per cent of India&#39;s manufacturing and 40 per cent of exports. 
 
The Reserve Bank had revised the rules pertaining to revival of advances to small businesses and asked lenders to form district-level committees to resolve stressed loans to MSMEs. 
 
Talking about the increase in sales of khadi and village industries product, Mishra said it has increased to Rs 37,935 crore in 2015-16 from Rs 33,136 crore in 2014-15. 
 
&quot;Prime Minister Narendra Modi&#39;s suggestion to consume khadi products has definitely helped in increasing the sales volumes. We have also improved the quality and introduced new products,&quot; Mishra&nbsp;said adding youth is showing keen interest in such products. 
 
The ministry is in discussion with public sector units to enhance procurement from MSME units as it has the potential to produce good quality products on time. 
 
&quot;We are talking with PSUs in groups. They have some issues like why they are not able to procure from these units. But we are doing our best to address their problems,&quot; he said adding the railways and defence ministers have assured that their departments would procure goods from MSMEs. 
 
When asked about the issue of bank loans to these units, he said MSMEs do complain about their problems in getting bank credits but &quot;we are discussing with them to resolve the issues&quot;. 
 
&quot;We are getting good number of complaints about banks but we are monitoring the situation and we are also trying to fix the issues,&quot; he added. 
 
The minister said exports from MSMEs have not come down. The sector accounts for 40 per cent of the country&#39;s total exports. 
Declining for 17th straight month in April, exports dipped by 6.74 per cent to USD 20.5 billion.

There is no integrated approach for the development of MSMEs though the sector accounts for 45 per cent of India's manufacturing and 40 per cent of exports

The national policy for the micro, small and medium enterprises (MSMEs), which seeks to boost the overall growth of the sector, is expected to be released by the end of this year. MSME Minister Kalraj Mishra said a committee headed by former Cabinet Secretary Prabhat Kumar is drafting the policy and "we are expecting the report by October 31 and it would be released after that". The committee would meet some more stakeholders for the proposed policy and they are also looking at policies of other countries, Mishra added. "We want a detailed policy for MSMEs," Mishra said while briefing about the achievements of his ministry during the two years of the NDA government. A committee will be set up by the end of this month to look after the revival and rehabilitation of sick MSME units, he added. At present, there is no integrated approach for the development of MSMEs despite the fact that the sector accounts for 45 per cent of India's manufacturing and 40 per cent of exports. The Reserve Bank had revised the rules pertaining to revival of advances to small businesses and asked lenders to form district-level committees to resolve stressed loans to MSMEs. Talking about the increase in sales of khadi and village industries product, Mishra said it has increased to Rs 37,935 crore in 2015-16 from Rs 33,136 crore in 2014-15. "Prime Minister Narendra Modi's suggestion to consume khadi products has definitely helped in increasing the sales volumes. We have also improved the quality and introduced new products," Mishra said adding youth is showing keen interest in such products. The ministry is in discussion with public sector units to enhance procurement from MSME units as it has the potential to produce good quality products on time. "We are talking with PSUs in groups. They have some issues like why they are not able to procure from these units. But we are doing our best to address their problems," he said adding the railways and defence ministers have assured that their departments would procure goods from MSMEs. When asked about the issue of bank loans to these units, he said MSMEs do complain about their problems in getting bank credits but "we are discussing with them to resolve the issues". "We are getting good number of complaints about banks but we are monitoring the situation and we are also trying to fix the issues," he added. The minister said exports from MSMEs have not come down. The sector accounts for 40 per cent of the country's total exports. Declining for 17th straight month in April, exports dipped by 6.74 per cent to USD 20.5 billion.

India to come out with micro, small and medium enterprise policy in 2016

msmes

Msmes, News on Msmes, stories on Msmes, articles on Msmes, Msmes stories at Wion, Msmes news, Msmes latest news