RBI RELIEF

industry so that more units and individual professionals can get financial support as well.

“After consultations with stakeholders and taking into account the remaining headroom under the scheme, it is decided to include individual loans for business purposes within its ambit,” she said. The scope of the Emergency Credit Line Guarantee Scheme (ECLGS) has also been expanded in line with the revised definition of MSMES and the cap on funding under the scheme doubled from ~5 crore to ~10 crore.

This is the latest in a string of stimulus measures announced by the Modi government to cushion the impact of the coronavirus disease pandemic, which struck at a time when a slowdown in householding spending and corporate investment had already become a drag on economic growth, which decelerated to 4.2% in fiscal 2019-20, the slowest pace in 11 years.

It follows precipitous growth contractions reported by the US and European countries after the pandemic closed shops, factories and restaurants, signalling a period of recession. The US economy posted a second-quarter contraction of 9.5%, the worst figure on record.