The World Bank recently, sanctioning a USD 750 million Emergency Response Program to financially ease and aid the Indian MSME sector and ensure liquidity in the same. It chalked out various estimations in which it could help the segment grow and somewhat get it out of the clutches of the global pandemic responsible for bringing down its operations.
The Emergency Response Program firstly, includes an overall budget of USD 2.75 billions in support of India’s Coronavirus emergency response instilling the MSME Project and secondly, USD 1 billion each has been sanctioned to finance India’s healthcare and provide necessities like food and other supplies using a consolidated delivery system.
The five key factors of World Bank’s MSMEs Emergency Response Program-
- World Bank aims to strengthen the financing capability of small finance banks and NBFCs and support SFBs through loans and equity.
- To further government’s ‘Self-reliant India’ policy, World Bank’s scheme intends to infuse finance into various sectors of the enterprises helping it to re-establish the production and distribution of the indigenous produces of the country.
- Ensuring a swift development in digital lending and better credit gaining payment platforms for the Indian MSMEs.
- With the purpose of increasing the quality production of the healthcare necessities and supply to the Government, the World Bank has planned to aid the health care sector business in the country with its Emergency Response Program.
- World Bank in close knit with International Finance Corporation has supported Indian Government in disbursing immediate cash flow to smaller businesses severely affected by the Coronavirus. It is also working with the Reserve Bank of India towards enabling lending de-rising and removing paperwork or risk barriers that come along with the application of working capital loans.