Agreement for Emergency Response Programme for MSME

The World Bank and the Government of India signed the $750 million agreement for the MSME Emergency Response Programme.

Daily Current Affairs Quiz 2020

Key-Points

The World Bank’s MSME Emergency Response Programme will address the immediate liquidity and credit needs of some 1.5 million viable MSMEs to help them withstand the impact of the current shock and protect millions of jobs.

The $750 million loan from the International Bank for Reconstruction and Development (IBRD), has a maturity of 19 years including a 5-year grace period.

Covid-19 Effects on MSMEs Sector

Covid-19 and the lockdown have dealt a severe blow to MSMEs in the country, which are facing challenges on multiple fronts.

The demand and supply chain is broken. As larger industries are not yet functioning to their full capacity, ancillary units are not getting enough orders.

With migrant labourers having returned to their native states, the sector is also facing shortage of labour.

Supply of raw material and transportation of finished products are other problems.