Welcome move

But zeal for helping MSMEs should be tempered with caution

Prime Minister Narendra Modi announced a package of 12 initiatives for Micro, Small and Medium (MSME) sector last week. The package includes measures that will help MSMEs enter a new era. In essence, the measures are aimed at not only boosting credit availability to the beleaguered sector but also making it easier for them to conduct business. Over the past two financial years, the MSME sector has suffered considerably by back-to-back policy shocks — demonetisation (in FY17) and the introduction of the goods and services tax (in FY18) — both of which led to a sharp reduction in incomes in