Rebooting economy | Rs 20 lakh crore package includes steps taken by RBI, earlier measures: CEA KV Subramanian
He added that the measures announced under the package not only work to save micro, small and medium enterprises (MSMEs), but also save jobs that the sector generates.
May 13, 2020 / 07:37 PM IST
Expressing his views on the first tranche of measures announced by FM Nirmala Sitharaman, Chief Economic Adviser KV Subramanian told CNBC-TV18 that the Rs 20 lakh crore package includes steps already taken by the Reserve bank of India (RBI) and those announced by the finance minister earlier this years in February.
He added that the measures announced under the package not only work to save micro, small and medium enterprises (MSMEs), but also save jobs that the sector generates. Subramanian said the measures are comprehensive, and cover debt, subordinate debt and equity.
They also cover healthy as well as stressed MSMEs.
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MSMEs often suffer from stress because of lack of equity which makes debt problematic. Thus, the equity cushion for MSMEs will mean a better credit rating and borrowing opportunities, he said.
His comments followed the announcement by FM Sitharaman of the first tranche of measures under the Atmanirbhar Bharat Abhiyan, wherein she detailed the economic relief measures for various sectors.Follow our full coverage of the coronavirus outbreak here