SMEs Online

Challenges faced by SMEs The vibrant sector that employs 40% of the country’s workforce and contributes 30% to its GDP, is one of the biggest victims of the viral outbreak. Companies under this segment are significantly facing a slowdown in their operations mainly in the form of low liquidity and lack of workforce. To ensure sustainability, unfortunately, many players have strictly started taking survival measures like layoffs and salary deductions. 52 www.dqindia.com

Government Measures

To help SME players sustain their businesses during this hour of crisis, the government has come forward with some much-needed measures. For instance, Long Term Repo Operations (LTRO) worth INR 100,000 crore rolled out by the Reserve Bank of India has enabled banks to increase their lending to SMEs at cheaper rates.

Along similar lines, the incumbent government has also come out with an economic package of INR 1.70 lakh crore under the Pradhan Mantri Garib Kalyan Yojana. This