The six package benefits that FM Nirmala Sitharaman announced on Wednesday will be beneficial well beyond the Covid-19 situation, allowing micro, small and medium enterprises to become more self-reliant
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Across the world, micro, small and medium enterprises (MSMEs) play an important role in the development of an economy. They help in job creation while keeping a tab on poverty and inequality. This is true for India too. MSMEs contribute to more than a third of the country’s GDP. With more than 63 million units, they account for 90 percent of the total number of enterprises in the country and provide jobs to 111 million people. Given the crucial role that they play, the sustainability of SMEs is the foremost concern of any government. The Covid-19 pandemic unmistakably brings two aspects to the forefront—the scale of the sector and its sheer vulnerability. Even in the pre-Covid-19 phase, several studies pointed to challenges faced by the sector. The oft-repeated concerns always stated that MSMEs continue to face multiple challenges: ​