Atma Nirbhar Bharat Scheme, Vocal for Local and MSMEs

In the first tranche of the relief Package, the government announced to provide MSMEs, collateral-free automatic loans for the next four years, which will be worth Rs.3 lakh crore. Repayment of the principal amount of these loans will not be required for a period of 12 months. There are an estimated 45 lakh beneficiaries of this scheme. It will help these MSMEs in paying their employees and not to take the decision of scaling down their business.

To benefit several companies at once, the definition of MSMEs has been changed by the Indian government. According to the revised definition, a company having a turnover of Rs.5 crore will now be considered as a micro-enterprise. The government has also disallowed its own procurement in Global Tenders for up to Rs.200 crores as a part of his campaign ‘Vocal For Local.’ This decision will provide an opportunity for MSMEs to supply for these big projects.

In the final tranche of the Relief Package, the government proclaimed bringing an ordinance to make amendments in IBC (Insolvency and Bankruptcy Code). This includes an increase of the debt threshold to 1 crore from the previous 1 lakh, stipulated to invite an insolvency procedure. Obviously, this will benefit MSMEs to a great extent.

We should also enthusiastically participate in the government’s ‘Vocal For Local’ initiative and encourage the growth of MSMEs by buying products and services from them instead of foreign companies. This will boost their confidence and profit and help them to expand in India to realize the vision of an ‘Atma Nirbhar Bharat.’