To encourage and help small entrepreneurs/businessmen, and thus to promote rapid growth in the sector of Small Scale Industries (SSIs) of India, the Prime Minister Narendra Modi announced many welcome aids to them during his New Year’s Eve speech on 31st December 2016, to the nation. Here, it may also be noted that, during this speech, he also announced many innovative and laudable schemes/programs to help the poor people residing in the rural and semi-urban regions of the country, farmers, senior citizens, pregnant women, etc. Seeking further support and promotion to the demonetization campaign by the people of India for the purpose of alleviating and eliminating the black money and other undesirable activities in the country, was certainly the pivotal theme of the PM’s speech.
To give strong boost to establishment and growth of the Micro, Small and Medium Enterprises (MSMEs) in places all across India, the following were announced on the NYE 2016: -
--> The Credit Guarantee for the micro, small and medium enterprises will be increased to INR 2 Crore from the previous level of INR 1 Crore. The loans to be taken from the NBFCs (Non-Banking Financial Companies) will also be covered under this new scheme.
--> The Banks will also be raising the cash credit limit to 25% from the previous 20% for the MSMEs.
--> Digital modes of payments by small businessmen and entrepreneurs will facilitate their income tax calculations at 6% instead of 8%.
Here, noteworthy also is the fact that the sector of MSMEs of India contributes over 40% to the annual national industrial output, around 30% to the yearly exports from India, and employs a massive magnitude of workforce. Hence, encouraging and strengthening the small scale industries is certainly a highly commendable move.
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