How Can Businessmen Avail Various Government Schemes During COVID-19?
Government bodies all across the world are paying due concerns and rolling out the economic relief packages and measures to support the enterprises. These programs are specially designed to superimpose the impact of a pandemic on small businesses. All of these programs are placed for the essential goods, health care, and financial support along with limiting the economic burden on the businessman of the various streams.
What is the Worst Outcome of the Pandemic?
Life, as we knew earlier especially in light of social and economic activities, has been blown away in disarray. However, some productive work segments have smartly switched to ‘work from home’ strategy but it is next to impossible for the manufacturing units of India. At this specific point, it is important to provide support for households or enterprise workers. India is a complex country that has a lot of limitations with economic and social policies. However, the timely initiatives of the government, as well as a possible implementation of social welfare activists, have outsmarted the crisis.
It is hard to accept that industry after industry and business after business faced a shutdown without any advance fund release, thus it is imperative than before that the governing bodies emphasize the economic support in these tough times. It has become more evident with this lockdown addressing the same cause, various initiatives are still in consideration but some have been already initiated for assisting the small or medium businessmen and workers to overcome the economic crisis.
RBI in India has also invested a huge amount into the banking sector to relieve the MSMEs with loan repayment. Large numbers of financial bodies are looking to monetize the support from the Central and state government to cope up with the issues of cash flow. With the widespread of the virus, it is obvious to say that the MSME segment has been facing the hardest hit.
Government assistance to the MSMEs
Since the outbreak of the pandemic government at different levels is taking essential measures to hold the MSME segment afloat. Recently the Reserve Bank of India has introduced long term repo operations (LTRO) around INR 100,000 crores to facilitate banks increasing the lending amount at the minimum interest rate. Even the Government banks are instructed to keep up a loan on standby worth INR 60,000 crore for financial aid to MSMEs.
Furthermore, Indian finance minister, Nirmala Sitharaman has declared the extension of the last date to file income tax returns for all the business sectors for the financial year 2018-'19 between March 31 and June 30. Earlier the deadline for GST returns filing March and April which is now extended till the end of June. A large amount of economic support is being offered to the MSMEs in order to help their establishment during the pandemic. Upon the government’s call of action, even the Bank institutions have announced that they will provide maximum flexibility to their customers. The government has also restricted employers to terminate their workers or employees, particularly the contractual employees in order to reduce wages. In all the workplaces if the employment is really non-operational then the employees are deemed to be on duty.
1. Delay in MSME loan repayment
RBI is overthrowing huge amounts in the banking center for relieving and providing the needful financial aid to the MSMEs. The byproduct of this initiative is obviously the liability of loan repayments because most of the businesses in this sector are looking for financial support from the government. This can also help them cope with managing the cash flow and lifesaver is relaxing in loan norms.
2. Additional Assistance to MSME workers and employees
In order to address the issue more actively, the Central government is preparing a number of strategies and action plans for all MSMEs to survive in the industry along with improving business efficiency. Significant measures have been taken by the Central government, Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI), sectoral ministries, and the Insurance Regulatory and Development Authority (IRDA) to boost the work structure and support businessmen of this sector. Below provided is the list of the following guidelines that have been issued for the same cause.
Export and import business
Container detention charges on all the shipment in cargo
Temporary relaxation in document processing and essential taxes
Foreign trade policy is also extended
Relaxation in the provision of physical copy submission
3. Health insurance and income support
Other than financial support, the government is also providing health insurance and income support to the citizens of the country. All the individuals who do not have any sort of health insurance are encouraged to opt for Ayushman Bharat Yojana in order to have a backup. This scheme also has coverage for the COVID-19 test, hospital admission, or medicines. Furthermore, NSAP enhances economic support towards senior or differentially able citizens. It is a Central government scheme that can increase its contribution based upon the state government facilitation.
As a businessman, you can reach out to all these schemes and consider referring to the local governing for better reference.
Keynote: In order to access the benefits and financial support offered by the state or central government under the MSME fund provision, it is mandatory for the small, medium, or large businesses to register their respective platforms on the MSME portal. There are lots of help and support measures initiated for the needful, all you have to do is sign in to the application form and our platform can manage registration for you.
Participation of the International Organization for Standardization
The authenticity of MSME registration certification is valid across multiple industries and we also conduct the online registration of various government-related schemes. Under the scope of activities, we duly undertake set up and registration of various instances. Our certification procedures work like a powerful strategic tool to extract the most out of business investments and eliminate high costs and errors from them. Within a few simple steps, you can fill the application form, prior to it we manage to issue the MSME certificate.