As India began a phased unlocking of the economy, Prime Minister Narendra Modi chaired a cabinet meeting in which “historic decisions” relating to the (Micro, Small and Medium Enterprises) sector and agriculture were expected to be taken. It approved a ?20,000-crore package for distressed MSMEs and ?50,000 crore equity infusion through fund of funds.
WATCH | “Rs 20,000 crore package for distressed MSMEs and Rs 50,000 crore equity infusion through Fund of Funds”: Union Minister Nitin Gadkari
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“Gaon, gareeb, kisan (villages, the poor, and the farmers) are the priority of the government,” a panel of Union ministers told the media after the meeting.
Union Minister Nitin Gadkari pointed out that MSMEs account for 29 per cent of the GDP, 48 per cent of the total exports from India are dependent on 6 crore MSMEs, and MSMEs also provide more than 11 crore jobs.
The cabinet under the chairmanship of Hon’ble Prime Minister has taken historical decisions for MSME Sector, street vendors and farmers. #CabinetDecisions @narendramodi11.4K5:35 PM – Jun 1, 2020Twitter Ads info and privacy1,372 people are talking about this
The cabinet approved changes to the definition of MSMEs. According to the new definitions, MSMEs with an investment of ?1 cr and turnover of ?5 cr will be classified as micro-units. Units with an investment of ?10 cr and turnover of ?50 cr will be classified as small units while those with an investment of ?50 cr and turnover of ?250 cr will be classified as medium units.
According to the new definitions, #MSMEs with an investment of Rs 1 crore and turnover of Rs 5 crore will be classified as micro-units.#AtmaNirbharBharathttps://mybs.in/2YNrm2U Atmanirbhar Bharat: Union Cabinet approves changes in definition of MSMEsThe government also approved an equity scheme for MSMEs worth Rs 50,000 crorebusiness-standard.com115:05 PM – Jun 1, 2020Twitter Ads info and privacySee Business Standard’s other Tweets
The cabinet approved a ?20,000 crore package for stressed MSMEs and ?50,000 crore infusion equity infusion through Fund of Funds. “The MSMEs which are exporting and have a good turnover will be provided money from a government fund of ?10,000 crore, which will be increased to ?50,000 crore. The units which have a good turnover and GST, will be listed and the government will buy shares in the company which will be a revolving fund and this will benefit the MSMEs entering the stock market,” he said.
WATCH | “Rs 20,000 crore package for distressed MSMEs and Rs 50,000 crore equity infusion through Fund of Funds”: Union Minister Nitin Gadkari
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Along with the MSME sectors, farmers have also been sharply hit by the pandemic. After Nitin Gadkar, it was upon the Minister of Agriculture Narendra Singh Tomar to take over and make announcements relating to the agriculture sector. The cabinet raised the minimum support prices for 14 crops and the rates were specified by the minister.
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“Minimum support prices (MSP) for 14 kharif crops increased by 50- 83%, to provide relief to the farmers,” Tomar said. Despite the coronavirus pandemic and the lockdown, he pointed out that procurement of wheat and paddy had gone up from last year.
Minimum support prices (MSP) for 14 kharif crops increased by 50- 83%, to provide relief to the farmers: Union Minister Narendra Tomar
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Tomar also announced that farmers would get more time, upto August to pay their loans. “Farmers get loans at an interest rate of seven per cent and if they pay it off on time, they further get a subsidy of seven per cent,” he announced.
#NewsAlert – Farmers get loans at an interest rate of 7 per cent and if they pay it off on time, they further get subsidy of 3 per cent: Union Minister Narendra Singh Tomar#UnlockingIndia
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This was the first cabinet meeting of the second year of the Modi government and more announcements are expected in the coming days, as the country tries to get its economic engine back on track as Unlock 1.0 gets underway.
This article first appeared on Arre
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