MSMEs key to self-reliant India; measures to boost size, scale of such units: Niti vice chairman

Niti Aayog Vice Chairman Rajiv Kumar on Wednesday lauded Finance Minister Nirmala Sitharaman's "outstanding follow-up" to the Prime Minister's stimulus announcement, saying the measures taken for MSMEs will boost their size as well as resolve many other problems.

"#MSMEs are crucial for the creation of an #AatmanirbharBharat and the measures announced today will surely lead to a boost in the size & scale of #MSMEs as well as resolve problems of bankruptcy and insolvency faced by many enterprises," Kumar tweeted.

Within less than 24 hours of Prime Minister Narendra Modi's Rs 20 lakh crore special economic package announcement, the finance minister came out with the first installment of the mega stimulus.

"The slew of measures announced by #FM @nsitharaman are an outstanding follow-up to #PMModi's announcement yesterday," Kumar said in another tweet.

Among the economic measures, Sitharaman announced about Rs 6 lakh crore package comprising Rs 3 lakh crore of collateral-free loans for small businesses and a Rs 30,000 crore lifeline to non-bank and housing finance companies to help the economy tide over disruptions caused by the coronavirus lockdown.

Also, the government has cut the tax rate on non-salary payments by 25 per cent, extended support to companies to meet statutory liability on employees' retirement fund, provided a Rs 90,000 crore bailout to cash-starved electricity distribution companies and gave construction firms up to six more months to complete the government projects.

The finance minister said the measures will help "spur growth and build a very self-reliant India".

"It addresses ease of doing business, compliance, and due diligence and the intention is also to build local brands," she said.