India offers $40 billion loans to small business to boost growth amid Covid pandemic

India will provide collateral-free loans worth $40 billion to boost liquidity for small businesses and help the economy tide over the coronavirus outbreak.

There are 15 different measures, including six pertaining to small businesses, Finance Minister Nirmala Sitharaman said in New Delhi on Wednesday. More measures will be announced over the course of the next few days, she said.

“Essentially this is to spur growth and to build a very self-reliant India,” Sitharaman said. “It addresses ease of doing business, compliance and due diligence and the intention is also to build local brands.”

Prime Minister Narendra Modi Tuesday said his government will spend an amount equivalent to 10% of the nation’s gross domestic product to help the economy get back on its feet after weeks of stay-at-home restrictions to beat the pandemic. The resultant halt to non-essential consumption set up Asia’s third-largest economy for its first annual contraction in four decades as businesses collapsed and jobs were lost.



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