The government announced steps to help MSMEs as part of its coronavirus economic package.
The government will only allow Indian companies to participate in tenders up to Rs 200 crore, Union Finance Minister Nirmala Sitharaman announced on Wednesday along with a slew of measures to help micro, small and medium enterprises (MSMEs) battered by the coronavirus crisis.
"Indian MSMEs and other companies have often faced unfair competition from foreign companies. Therefore, global tenders will be disallowed in government procurement tenders up to Rs 200 crore," Ms Sitharaman said.
Saying that more measures will be announced later, the Finance Minister gave some details of a Rs 20 lakh crore economic relief plan announced by Prime Minister Narendra Modi on Tuesday aimed at supporting an economy ravaged by a weeks-long coronavirus lockdown.
In an address to the nation, PM Modi said that the package was equivalent to nearly 10 per cent of India's gross domestic product, and was aimed to push for a more self-reliant economy and help the crores out of work and the businesses reeling under the prolonged shutdown.
On Wednesday, Ms Sitharaman said MSMEs will be offered collateral-free bank loans worth Rs 3 lakh crore in a move expected to help 45 lakh businesses by October.
She also announced a change in the definition of MSMEs, raising the slabs to ensure more businesses get benefits.