90 lakh enterprises given credit worth Rs 2.4 lakh crore amid pandemic: PM Narendra Modi
PM Narendra Modi said that MSMEs and startups will be the identity of Atmanirbhar Bharat and that it is important for the financial sector to identity their aspirations and support them.
February 26, 2021 / 02:43 PM IST
File image: Prime Minister Narendra Modi
Prime Minister Narendra Modi on February 26 said that his government formulated special schemes for India’s startups and Micro, Small and Medium Enterprises (MSMEs) as they would be the identity of ‘Aatmanirbhar Bharat’.
Addressing a webinar on implementation of the Union Budget in financial services sector, PM Modi said that around 90 lakh enterprises were given credit worth Rs 2.4 lakh crore under these special schemes.
“Atmanirbhar Bharat will be built by our MSMEs and startups. They will be the identity of Atmanirbhar Bharat. Thus, we formulated special schemes for them during the coronavirus pandemic. Around 90 lakh enterprises have received a credit worth Rs 2.4 trillion (Rs 2.4 lakh crore) under these special schemes,” PM Modi said.
“Supporting MSMEs and startups, and expanding credit flow to them is key. The government has reformed and opened many sectors such as agriculture, coal and space for them. Now it is the responsibility of the financial sector to identify and help these aspirations from small towns and villages, and make them Atmanirbhar Bharat’s strength,” PM Modi added.
The prime minister also said that it is important to ensure that credit flow increases for small enterprises and startups, especially fintech companies.
The Union Budget 2021-22 had earmarked an allocation of Rs 15,700 crore for MSMEs. The sector was allocated Rs 7,572 crore in Budget 2020.
While the COVID-19 pandemic's economic impact disrupted all sectors, it is the MSME sector that was seen as having borne the maximum brunt of the crisis. As a result of the pandemic-induced lockdown, the sector was facing a massive liquidity and supply crunch, shortage of labour and non-payment of dues.
The Centre had also announced a Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs under the Aatmanirbhar Bharat (self-reliant India) package to mitigate some of this stress. The scheme, earlier valid till October 2020, was later extended till March 21, 2021.