Gaurav the writer#

Past few days have evident of many ups and down in financial indicators like SENSEX and nifty and so do with the corona cases in the country. India finally surpassed Russia and secured third position in corona hit list. The rise in financial indicator defies the idea and reviews given against the economic health of the nation. How can that be possible? Are investors not paying attention to the reports or reviews or they are in cashing the opportunity arose due to Corona crisis. Make a wild guess as why shares of automobile will rise when people are not buying new vehicles? This is called economic paradox. The investors are happy as government announced relief packages and banks pumped up more liquidity in market. However, the economist has already warned investor as this is temporary situation and it would be irrational to be happy about as the G.D.P. is not growing and financial indicator are insufficient to mirror that in realistic term. Economist says that having a good market d

Indian SME is second largest after China. It consists of almost 63.05 million micro industries, 0.33 million small scale industries and 5000 medium enterprises. MSME’s direct and indirect contribution in export is around 45%. Even though the interest rate for SME’s is almost 1-1.5% lower in comparison to ordinary business loan. Currently India has total 3.61 million units of MSME’s that generates 120 million employments. The manufacturing based SME’s contribute 6.11% in G.D.P where as service sector units have 25% contribution in G.D.P. However, it has been observed that Banks and NBFCs are acting as a risk averter to finance them. Since SMEs required recurring liquidity to run their operations as a result the numbers of vulnerable SMEs become very high.    To overcome this issue and to support MSMEs, The finance minister of India made a significant change in MSME development Act, 2006 and the new definition of MSME drawn. The reason for change was basically redefining the MSME’s i