The Union government is actively considering a new agro policy for the MSME sector wherein focus would be on procurement of the locally available raw material. It is learnt that the scheme would focus on investment into food processing units in the rural and tribal areas.

Under the scheme cash subsidy to the units could be given particularly for the unorganised sector. The government is mulling on how the budgetary allocation would be made and funds would be given to the units, as the government is keeping an eye on the impact of the lockdown on MSME sector amid Covid-19 pandemic.

One key observation was, an official said, that the reverse migration has started and many state governments are actively considering giving them  job opportunities in their home states.

For example, UP Chief Minister Yogi Adityanath has already directed state government officials to make plans for generating 15 lakh employments for the people returned from various parts of the country.

Even small states like Uttarakhand have also decided to put in place schemes for self employment for the people returning from other states and announced subsidy for the same. 

Similarly many other states, including Madhya Pradesh, have also decided to further reform in industrial policy of the state to not only attract investment but strengthen the existing industrial units.

Meanwhile, the MSME sector has sought relief from the government. In a recent interaction with the Minister for MSME, the industry representative highlighted some issues including further extension of moratorium on loan, payment of salaries to workers during lockdown from their ESI and Provident Fund, helpline for MSMEs, strengthening access to finance and so on.