The proposal is an attempt to help revive businesses in the small retail sector that have been hit by the entry of e-commerce giants such as Amazon, Flipkart, et cetera.
New Delhi: A number of welfare schemes to capture the vote bank is expected to be announced on 1 February 2023, when Union Finance Minister Nirmala Sitharaman will present the last full budget before the 2024 general election. The Narendra Modi-led government is likely to announce a scheme providing low-cost credit to small retailers and ease some rules governing the sector, Reuters reported quoting two officials.
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The proposal is an attempt to help revive businesses in the small retail sector that have been hit by the entry of e-commerce giants such as Amazon, Flipkart, et cetera.
“The government is working on a policy through which easy credit can be made available at low interest rates. Affordable and easy loans against inventories is one of the options,” a government official, who declined to be named, told Reuters.
However, the report added that neither of the officials provided details on how banks would be compensated for providing cheap loans.
“If India has to achieve 8-9 per cent of GDP growth and MSMEs have to contribute 40 per cent from the current 30 per cent, credit is a must. All of this ecosystem development is actually leading an explosion in the credit to small businesses. Simultaneously, this entire environment of co-lending where banks will co-lend along with the NBFC will also unleash the liquidity flow to NBFC. I am seeing a massive creation of business around small business financing within the combination of NBFC+fintech rolled into one as long as you are smart enough to use the data technology and lending as a service model.”
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Starting the new year while reaffirming its commitment to farmers, multi business conglomerate ITC Limited is building both scale and speed in its Climate Smart Village program to ensuring yearlong economic security and stability while helping in mitigating unpredictable and extreme climate-led effects on agriculture”, U GRO Capital Managing Director and Vice Chairman Shachindra Nath told Financial Express.
