14.6 lakh MSMEs saved post-Covid including the livelihood of 6.6 crores of people, says SBI report
According to a State Bank of India (SBI) report, the government’s post-Covid Emergency Credit Line Guarantee Scheme (ECLGS) for Micro, Small and Medium Enterprises (MSMEs) and other businesses has been able to save at least 14.6 lakhs MSME loan accounts.
Of the 14.6 lakhs of MSMEs saved due to the ECLGS scheme since its launch in May 2020, almost 93.8% were micro and small enterprises, according to the report by SBI's Group Chief Economic Adviser. In absolute terms, MSME accounts worth US$ 27 billion (Rs 2.2 trillion) had improved since the inception of ECLGS for the entire banking industry. This means around 12% of the outstanding MSME credit was saved from slipping into the Non-Performing Assets (NPA) category because of the scheme.
The report said that turning NPAs would have led to unemployment for about 1.65 crore workers working with these MSMEs, hence because of ECLGS, the livelihood of these people has been saved. The big beneficiaries of the scheme were the trading sector (kirana shops, etc.), food processing, textiles, and commercial real estate. This was followed by private entities and then proprietorship firms. State-wise, Gujarat was the biggest beneficiary of the scheme, followed by Maharashtra, Tamil Nadu, and Uttar Pradesh.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.