World Bank grants India $750 mn emergency funding to help small businesses

Some 1.5 million businesses in MSME sector will get liquidity and jobs will be saved as a result, says World Bank.

The World Bank will give $ 750 million as loan to India for strengthening small businesses that form the backbone of the country’s economy and were devastated in the coronavirus pandemic.

The emergency lending will ensure liquidity for some 1.5 million micro, small and medium enterprises (MSME) and protect millions of jobs, said the Bank in a statement, referring to how India’s government small businesses.

The money will help government’s efforts to channel liquidity to MSME through a range of instruments, including credit guarantees, and de-risk lending from banks and Non-Banking Financial Companies (NBFCs).

It would improve the funding capacity