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The Government of India has recently undertaken several measures to boost India’s financial growth. Actions taken range from plans to emphasize on investment with assistance from lenders like Non-Banking Financial Companies and Housing Finance Companies, to implementations of schemes that help small and medium scale industries financially have been envisioned to make India a $5 trillion economy.
- The Government of India has approved 17 proposals in 2019 alone, worth a total of over Rs.7,000 crore. Authorities plan to introduce schemes worth Rs.20,000 crore by the end of January 2020.
From tailor-made financial plans like the Udyogini scheme that help women entrepreneurs to initiatives that encourages traditional industries such as khadi, coir, etc., these schemes offer all types of assistance including collateral-free credit and access to better equipment and training at incubation centers spread across the nation, helping them build a successful manufacturing business over time.
Initiatives to help boost the nation’s economic growth
The primary aim of the Government of India is to organize industries and artisans in clusters to provide better support at every level.
The primary aim is to create unremitting employment, long-term sustainability, and enhanced marketability of products so that more overall wealth is generated at the ground level which will contribute to the nation’s economy.
The focus lies on schemes such as PMEGP (Prime Minister’s Employment Generation Programme), ASPIRE (Scheme for Promotion of Innovation, Rural Industry, and Entrepreneurship), SFURTI (Scheme of Fund for Regeneration of Traditional Industries), CGTMSE (Credit Guarantee Scheme for Micro and Small Enterprises).
Other than that, schemes like Udyogini have also seen major success in the last few years, proving the effectiveness of such initiatives.
- The Udyogini scheme has benefitted more than 7,000 women entrepreneurs across the nation, covering approximately 1,600 villages and engaging over 53,700 producers.
Here are some of the initiatives that have been envisioned to improve India’s economy in the near future.
- Udyogini
Introduced by the Women Development Corporation of the Indian Government, Udyogini scheme offers financial support to promote women entrepreneurship in the rural sections of the nation.
This scheme promotes literacy amongst women living in the rural and backward sections of the nation while teaching financial skills that a seasonal business owner should have to allow them to better manage their organization’s finances.
The credit is provided for women entrepreneurs indirect agricultural activities, the SSI sector, retail traders, etc.
Any enterprise owned and operated by women are eligible to apply for this credit, provided it is a proprietary concern, or the female applicant holds at least 51% of the stake of that organization.
The loan limit is determined on a case-to-case basis (it also depends on why a borrower requires the funds.)
- CGTMSE
Credit Guarantee Scheme for Micro and Small Enterprises offers collateral-free credit to MSMEs across the nation.
The fund is allocated from a joint trust, made by Small Industries Development Bank of India, or SIDBI, and MSME ministry of India.
Credit Guarantee Scheme for Micro and Small Enterprises was introduced in August 2000, made available for all types of SMEs and MSMEs other than retail traders, educational and training institutions, and self-help groups.
Under this scheme, 75% of the loan sum is guaranteed by the trust fund, helping them avoid a business financial crisis while eliminating chances of defaulting on the credit during repayment.
Other than the credit facility extended by CGTMSE, entrepreneurs can also borrow advance from Government-backed or private financial institutions to cater to their financial requirements.
NBFCs like Bajaj Finserv offer up to Rs.30 lakh as Business Loan, sufficient as short-term finance for small and medium scale enterprises to meet their obligations.
- PMEGP
PMEGP, or Prime Minister’s Employment Generation Programme, is a credit-linked subsidy scheme that offers financial assistance to micro and small scale enterprises in the non-farm sector.
PMEGP was introduced in 2008, with the primary aim to help traditional artisans and youths in the rural and financially backward communities.
Khadi and Village Industries Commission acts as the nodal agency for this scheme at the national level, while District Industries Centres, banks, and State KVIC Directorates act at the State level for this scheme.
PMEGP has achieved tremendous success to date, with a total of 5.45 lakh micro enterprises benefiting through a financial subsidy of approximately Rs.12,000 crore.
A persistent drive to improve the employment situation of India’s youth, helping industries from the ground up, and providing the much needed financial boost is likely to lift the nation’s economy by a significant margin in the upcoming years. The above-mentioned Government schemes act as the guide to building India’s prosperous economy.
