World Bank approves 750 million USD to support Indian MSMEs

On June 30, 2020, the world Bank approved 750 million USD of budget support to India. The funds are to be used to support 15 crore MSMEs in the country.

Highlights

The funds are to be used to strengthen small financing banks, non-banking financial companies. This will help unlock liquidity flow in the country.

India and World Bank

The World Bank had earlier approved 1 billion USD each for social and health sectors. The international organization had approved all the three grants under its “Emergency COVID-19 Response to India”. In all, World Bank has provided 2.75 billion USD since the beginning of COVID-19.

About the Loan

The loan amount is to be sanctioned by IBRD (International Bank of Reconstruction and development) of World Bank.

MSME and COVID-19

The COVID-19 has left a deep impact on the MSMEs. The Atma Nirbhar Bharat Abhiyan primarily focuses on the MSMEs.

MSMEs in India

According to the Annual Report of Ministry of MSME, 2018-19, there are 6.34 crores of MSMEs in India. They employ more than 11 crore people. According to a survey, only 7% of the Indian MSMEs believe that they can withstand the COVID-19 crisis.

Month: Current Affairs - July, 2020