ECLGS Loans of Rs 3.5 Lakh Cr Shielded MSMEs from Bankruptcies: PM

New Delhi, Aug 16 (KNN) The central government during the covid-19 pandemic saved micro, small and medium enterprises (MSMEs) from bankruptcy with Rs 3.5 lakh crore loan, said Prime Minister Narendra Modi in his Independence Day speech on Tuesday.

“MSMEs were not allowed to go bankrupt with the help of loans worth Rs 3.5 lakh crore in the crisis of Coronavirus. They were not allowed to die, they were given strength,” he said. 

Reflecting on the aspirations of middle class, he said, “When poverty reduces in the country, the power of the middle class increases a lot. And I assure you with a guarantee that in the coming five years, the country will take its place in the first three world economies.”

He added that today 13.5 crore people have come out of poverty to become the strength of the middle class. When the purchasing power of the poor increases, the business power of the middle-class increases. 

“When the purchasing power of the village increases, the economic system of the town and city runs at a faster pace. This interconnected is our economic cycle. We want to move ahead by giving it strength,” he added.

Additionally, the Prime Minister said that when the (exemption) limit of income tax is increased from Rs 2 lakh to Rs 7 lakh, then the biggest benefit is to the salaried class, especially to the middle class.

Talking about fighting inflation, the PM said that India has tried its best to control inflation. “We cannot think that our things are better than the world, I have to take more steps in this direction to minimise the burden of inflation on my countrymen,” he stated. 

The inflation index for rural and urban was 7.63% and 7.20%, respectively.  (KNN Bureau)