The World Bank has announced help to overcome the economic loss caused to the MSME industry due to the second wave of Corona. Even in the last phase of the epidemic, he gave $ 750 million in aid.
World Bank extended helping hand
The World Bank has extended a helping hand to overcome the loss caused to the MSME sector due to the Corona crisis. The World Bank’s Board of Executive Directors today announced an assistance of $500 million to support the Government of India’s nationwide initiative. Under this, a target has been set to improve the performance of about 555,000 MSMEs.
Apart from this, under the government’s Resilience and Recovery Program (MCRRP), efforts are being made to raise $ 15.5 billion funding for the $ 3.4 billion MSME industry. For the second time, the World Bank has extended its hand in the direction of promoting Micro, Small and Medium Enterprises (MSMEs) under the Performance Program (RAMP). Earlier in July 2020, it had announced financial assistance of $ 750 million.
The first phase of the RAMP program will focus on increasing the cash flow in the MSMEs sector and meeting the credit requirements. In addition, the World Bank will support the Government of India’s efforts in increasing MSME productivity and financing for economic recovery. In the medium term, long-standing financial problems will be addressed in private sector financing.
Junaid Ahmed, Country Director, World Bank in India, said, “The MSME sector, an important backbone of India’s economy, has been badly hit by the COVID-19 pandemic. “The RAMP program will accelerate efforts to support firms to return to pre-crisis production and employment levels, laying the foundation for long-term productivity-driven growth and creation of much-needed jobs in the MSME sector.”
Apart from the national level activities, this program will be implemented in the proposed states like Gujarat, Maharashtra, Punjab, Rajasthan and Tamil Nadu, which will help in launching targeted activities. Later it will be included in the program of additional states.
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