President Donald Trump and PM Narendra Modi.
The country’s export is being damaged after US President Donald Trump imposed 50 percent tariff on India. The effect of which is expected to be more on the MSME sector. Keeping this in mind, the Government of India is finalizing a comprehensive relief package for micro, small and medium exporters. So that they can be compensated for the loss in export.
According to the CNBC voice report, the relief package given by the government to this sector is now in the final stages. The industry is facing an estimated loss between $ 45 to $ 80 billion due to the US tariff.
There are five yojanas involved
There are five new schemes at the core of the proposed scheme, which are based on the credit guarantee of the Covid-era, but are prepared according to today’s challenges. The aim of these initiatives is that the business should reach the working capital easily, the limit of the loan without pledged should be increased from ₹ 10 lakh to ₹ 20 lakh and the loan should be made cheaper by giving subsidy on interest. This package will also open new avenues of equity financeing, so that companies will be able to collect funds for their business without increasing debt. Along with this, special support will be given to sectors like Textile, Garment, James-And-Jewelry, Leather, Engineering Goods and Agro-Merin Export.
What is the motive
Its major objective is to reduce the burden of working capital, save jobs and give time to shipment diversify and give time to find new markets. Many companies are already trading via Bhutan and Nepal to reduce the risk. This step shows that the government wants the employment sector to be protected from global shaking and despite the challenges outside, the growth should be accelerated.