Millions of small businesses have benefitted from host of schemes announced by the government: President Ram Nath Kovind

While addressing the Parliament at the beginning of the Budget session, Ram Nath Kovind said that millions of small businesses have benefitted from host of schemes announced by the government since the outbreak of the Coronavirus pandemic.

These include Rs.3 trillion emergency credit line guarantee scheme (ECLGS), Rs.20,000 special fund for distressed businesses and equity infusion through Fund of Funds announced by the finance minister Nirmala Sitharaman as a part of the Aatmanirbhar Bharat economic package to enable economic revival.

“Efforts such as the Rs.3 lakh crore rupee emergency credit (line) guarantee scheme, the Rs.20,000 crore special scheme for the stranded MSMEs (micro small and medium enterprises) and the Fund of Funds have benefitted millions of small entrepreneurs," the President said at the joint sitting of the two houses.

While the scheme such as ECLGS was launched soon after the nationwide lockdown to enable small businesses pay salaries and rent besides meeting restocking expenses, initiatives such as Funds of Funds are expected to expand the size as well as the capacity of MSMEs and encourage businesses with good record of financial performance to get listed on the main board of domestic bourses.

He further said that the government has taken several steps to give new employment opportunities to women. “So far more than Rs.25 crore loans have been given under the Mudra scheme out of which about 70 per cent loans have been given to women entrepreneurs," Kovind added.

Mudra scheme was announced by the government few years ago to ensure better access to credit for small firms, boost entrepreneurship and promote financial inclusion.