Thread by @mypartyisNOTA

The Economic package for Self-Reliance (#atmanirbharbharat) amid covid:-

Announced package - ₹20lakh cr
Already announced PMKGY - ₹1.7lakh cr
RBI liquidity announced - ₹6.5lakh cr

11.5 lakh cr NEW packages to be announced by #NirmalaSitharaman

(THREAD)

₹3 lakh cr loan package, ₹50k cr equity infusion and ₹20k subordinate debt(NPA) relief for #MSMEs are great announcements.

But only 33% MSMEs take credit from formal sector(Banks&NBFCs), 66% take it from informal sectors.

Will this reduce NPA in formal sector by MSMEs??

The definition change for #MSMEs was a needed measure but it's not something newly proposed.
It was proposed in 2018 by cabinet but came into consideration amid this Covid adversity.

Hope this changes the drastic figures as current avg employment generated by MSME is of 2.

For (Only direct link to) #Atmanirbharbharat

The 200cr cap for only local tenders in govt purchasing is a WELCOMING step to increase MSME participation in govt supply chains for our initiative to make us self reliant, self sufficient and strength the Make in India initiative.

After the deteriorating conditions of NBFCs in India ,Confidence building measures were needed to build trust in the market

- ₹50k cr TLTROs by RBI
- ₹45k cr partial credit guarantee irrespective of credit ratings
- ₹30k special liquidity package

But it's not #Atmanirbharta

Welcoming steps are:

- 25% TDS & TCS deduction on non salaried payments.
- Liquidity injections in bankrupting for Electricity DISCOMs.
- Measures for govt contractors for deadlines & on partial bank guarantees.
- Real estate sector moratorium measures.

For the #EPF schemes that is reducing it from 24% to 20% covers only about 18 per cent of EPF subscribers as it is supposed to benefit 7.9 million out of a total 43 million workers due to it's condition of enterprises with 90% employees earning monthly wage of less than ₹15000.

Govt Obligations presented as self reliance economic measures:

- E-marketplace for MSMEs.
- Payment of Govt Refunds and Dues.
- Change of tax return & assessment dates.

#AtmaNirbharBharatAbhiyan