PM chairs first Cabinet Meeting of second year in office

Historic decisions for MSME sector, street vendors and farmers taken

New Delhi, June 1 (Punjab Post Bureau) – The Union Cabinet, chaired by Prime Minister Shri Narendra Modi met on Monday, 1st June 2020. This was the first meeting of the Union Cabinet after the Central Government entered into its second year in office.

            During the meeting, historic decisions were taken that will have a transformative impact on the lives of India’s hardworking farmers, MSME sector and those working as street vendors.

  Helping hand to MSMEs:

Micro, small and Medium Enterprises popularly called as MSMEs are the backbone of Indian economy. Silently operating in different areas across the country, more than 6 crore MSMEs have a crucial role to play in building a stronger and self-reliant India.

             In the aftermath of COVID-19 pandemic, PM Shri Narendra Modi was quick to recognise the role of MSMEs in building the Nation. That is why MSMEs formed a very prominent part of the announcements made under the Atmanirbhar Bharat Abhiyaan. 

              Under this package, the MSME sector has not only been given substantial allocation but has also been accorded priority in implementation of the measures to revive the economy. Implementation relating to several of the key announcements have been made already.

             Today, Government of India has laid down the road map for effective implementation of other announcements under the Atmanirbhar Bharat Package too. These include:

• Upward revision of MSME Definition. This is yet another step towards ease of doing business. This will help in attracting investments and creating more jobs in the MSME sector;
• Proposal for provisioning of Rs 20,000 crore as subordinate debt to provide equity support to the stressed MSMEs has been formally approved by the cabinet today. This will benefit 2 lakh stressed MSMEs.
• Proposal for equity infusion of Rs. 50,000 crores for MSMEs through fund of funds has also been approved by the Cabinet today.   This will establish a framework to help MSMEs in managing the debt-equity ratio and in their capacity augmentation. This will also provide an opportunity to get listed in stock exchanges.