Aatmanirbhar Bharat offers MSMEs short-term respite: Crisil SME Tracker

3.5 trn Atmanirbhar Bharat package for SMEs can increase credit to MSMEs by 18-19% which can address the short-term liquidity crunch. Here's a closer look at the measures announced, and their impact

The Rs 3.5-trillion Aatmanirbhar Bharat package for micro, small and medium enterprises (MSMEs) can potentially increase credit to MSMEs by 18-19 per cent, given that banks and other financiers lent around Rs 18-19 trillion to the sector in 2019-20. Actual disbursements, however, will also depend on the new MSME classification.
 

While this will cushion the impact of the blow from the Covid-19 pandemic by addressing the short-term liquidity crunch MSMEs are facing, risks loom beyond the current fiscal year.
 

Here’s a closer look at the measures announced, and their impact:
 

Complete credit guarantee scheme: The Rs 3-trillion infusion under this