Maternal Mortality in India

Why in News?

Recently, the Registrar General of India’s Sample Registration System (SRS) released the latest special bulletin on Maternal Mortality in India (2017-19).

• As per the World Health Organisation, maternal death is the death of a woman while pregnant or within 42 days of termination of pregnancy, from any cause related to or aggravated by the pregnancy or its management.
• Maternal Mortality Ratio (MMR) is defined as the number of maternal deaths during a given time per 1,00,000 live births during the same time.

Where does India Stand on MMR?

• The MMR of India has declined by 10 points. It has declined from 113 in 2016-18 to 103 in 2017-19 (8.8 % decline).
• The country had been witnessing a progressive reduction in the MMR from 130 in 2014-2016, 122 in 2015-17, 113 in 2016-18, and to 103 in 2017-19.
  • India was on the verge of achieving the National Health Policy (NHP) target of 100/lakh live births by 2020 and certainly on track to achieve the United Nations Sustainable Development Goals target of 70/ lakh live births by 2030.
• Many developed countries have successfully brought down MMR to single digits. Italy, Norway, Poland and Belarus have the lowest MMR of two, while it is seven in both Germany and the UK, 10 in Canada and 19 in the US.
• Most of India’s neighbours — Nepal (186), Bangladesh (173) and Pakistan (140) — have a higher MMR. However, China and Sri Lanka are way ahead with MMRs of 18.3 and 36 respectively.

What are the State Specific Findings?

• The number of States that have achieved the SDG target has now risen from five to seven -- Kerala (30), Maharashtra (38), Telangana (56), Tamil Nadu (58), Andhra Pradesh (58), Jharkhand (61), and Gujarat (70).
  • Kerala has recorded the lowest MMR which puts Kerala way ahead of the national MMR of 103.
  • Kerala’s Maternal MMR has dropped by 12 points. The last SRS bulletin (2015-17) had put the State’s MMR at 42 (later adjusting it to 43).
• There are now nine States that have achieved the MMR target set by the NHP, which include the above seven and Karnataka (83) and Haryana (96).
• Uttarakhand (101), West Bengal (109), Punjab (114), Bihar (130), Odisha (136) and Rajasthan (141) -- have the MMR in between 100-150, while Chhattisgarh (160), Madhya Pradesh (163), Uttar Pradesh (167) and Assam (205) have the MMR above 150.

What are some Related Government Initiatives?

• Janani Suraksha Yojana under the National Health Mission to link cash assistance to institutional deliveries.
• The Pradhan Mantri Surakshit Matritva Abhiyan (PMSMA) provides a fixed day for assured, comprehensive and quality antenatal care free of cost to pregnant women on 9th of every month.
• Pradhan Mantri Matru Vandana Yojana, Poshan Abhiyan and LaQshya Guidelines.

Way Forward

• Maternal mortality in a region is a measure of reproductive health of women in the area.
• The WHO has already appreciated India’s efforts in reducing the maternal mortality rate. India needs to give a special focus to states with higher MMR.

Source: TH

National Strategy and Roadmap for Medical and Wellness Tourism

Why in News?

Recently, the Ministry of Tourism has formulated a National Strategy and Roadmap for Medical and Wellness Tourism.

• The policy envisages promoting India as a Medical Value Travel (MVT) and Wellness destination.

What is Medical and Wellness Tourism?

• Medical & Wellness tourism may be defined as ‘activities related to travel and hosting a foreign tourist who stays at least one night at the destination region for the purpose of maintaining, improving or restoring health through medical intervention’ .

What are the Key Points of the Roadmap?

• Mission: To create a robust framework and synergy amongst the Ministries of Central Government and State Governments and Private Sector for promoting India as a Medical Value Travel (MVT) and Wellness destination.
• New Agency: For this, a new National Medical and Wellness Tourism Board will be created as Minister of Tourism as its Chairman.
  • It will provide a dedicated institutional framework to take forward the cause of promotion of Wellness & Medical Tourism.
• Key Strategic Pillars: The Strategy has identified the following key pillars:
  • Develop a brand for India as a wellness destination.
  • Strengthen the ecosystem for medical and wellness tourism.
  • Enable digitalization by setting up Online MVT Portal.
  • Enhancement of accessibility for MVT.
  • Promoting Wellness Tourism.
  • Governance and Institutional Framework.

What does SWOT Analysis of Medical Tourism in India Reveal?
Strengths:	India has world-class doctors and hospitals The cost of the treatment is a fraction of the cost in the source markets The increasing popularity of India as a tourist destination in the west. India offers a range of tourism opportunities to Medical Value Traveller to combine the treatment with visit to tourist destinations. Eastern Healthcare Wisdom along with the expertise of Western Medicine Eastern: Traditional Healthcare Therapies like Yoga, Ayurveda & Naturopathy. Western: Allopathy Fast track appointments.
Weaknesses:	Unorganised MVT Framework: There are no regulations to govern MVT sector, which leaves the sector unorganised and lack of monitoring the quality of services. Lack of a nodal body to spearhead Medical Value Travel. No campaign for India as a MVT destination. Lack of awareness about National Accreditation Board for Hospitals (NABH) accreditation at the international level. Lack of uniform pricing policies across the Hospitals. Western perception of India as an unhygienic country.
Opportunity:	Demand from Countries with an Ageing population. Demand for Wellness and Alternative cures. Long waiting periods in developed countries. Demand from countries with undeveloped medical facilities. India has a huge diaspora and they can combine their visit to India with medical treatment. Improved Connectivity.
Threat:	Regional Competition. Lack of international accreditation. Overseas medical care not covered by the insurer. Exploitation by middlemen.

What are the Steps taken for the Promotion of Medical and Wellness Tourism?

• The Ministry of Tourism, releases global print, electronic and online media campaigns in important and potential markets overseas, under the ‘Incredible India’ brand line.
• 'Medical Visa’ has been introduced, which can be given for specific purposes to foreign travellers coming to India for medical treatment.
  • ‘E- Medical Visa’ and ‘E-Medical Attendant Visa’ have also been introduced for 156 countries.
• The Ministry of Tourism provides financial Assistance under Market Development Assistance Scheme to Medical Tourism Service Providers accredited by National Accreditation Board for Hospitals & Healthcare Providers (NABH) for participation in Medical/ Tourism activities.

Way Forward

• ‘One India One Tourism’ Approach: Tourism encompasses multiple ministries and takes place in and within many states and thus requires collective efforts and cooperation with centre and other states.
• Promoting Ease of Tourism: To truly ensure a seamless tourist transportation experience we need to standardise all interstate road taxes and make them payable at a single point which will facilitate the ease of doing business.

Source: PIB

River Rejuvenation Detailed Project Report

Why in News?

Recently, the Ministry of Environment, Forest and Climate Change released Rs. 19,000–crore Detailed Project Reports (DPRs) on rejuvenation of 13 major rivers through forestry interventions.

• These 13 rivers are Jhelum, Chenab, Ravi, Beas, Sutlej, Yamuna, Brahmaputra, Narmada, Godavari, Mahanadi, Krishna, Cauvery, and Luni.

What was the idea behind these DPRs?

• It is modelled on the lines of the work done as part of the National Mission for Clean Ganga (NMCG) in 2015-16 for the river and acknowledging that the growing water crisis is on account of degradation of river ecosystems,
• The project adopted a multi-scale, multi-stakeholder, multidisciplinary and holistic approach so as to accomplish broad objectives of ‘Aviral Dhara’ (uninterrupted flow), ‘Nirmal Dhara’ (clean water), and ecological rejuvenation.

How much area/landscape is Expected to be Rejuvenated?

• The 13 rivers collectively cover a total basin area of 18,90,110 square kilometres that represents 57.45% of the geographical area of the country.
• The length of 13 rivers, including 202 tributaries within the delineated riverscapes, is 42,830 km.
  • The Brahmaputra Riverscape incorporated the highest number of tributaries (30) and 1,54,456 sq km area, respectively.
• The documents propose many kinds of afforestation for the rivers. They include timber species, medicinal plants, grasses, shrubs and fuel fodder and fruit trees.

What are the Interventions Planned?

• The DPRs recognise the merit of adopting a holistic riverscape approach for forestry interventions in three types of landscapes viz., natural, agriculture, and urban within the vast expanse of a riverscape besides conservation interventions including soil and moisture conservation measures, riverine and riparian wildlife management, and wetland management.
• These are done with supporting activities such as policy level interventions, strategic and adaptive research, capacity development, awareness creation, project management and participatory monitoring & evaluation).

What are the Potential Benefits of the Proposed Interventions?

• Increase in Forest Cover:
  • It is expected to increase the cumulative forest cover of 7,417.36 sq km across 13 riverscapes.
• Help in Sequestration of CO₂:
• Proposed interventions would help in sequestration of CO₂ to the extent of 50.21 million tonnes of CO₂ equivalent in 10-year-old plantations while the value of estimated CO₂ sequestered in 20-year-old plantations would be 74.76 million tonnes of CO₂.
• Help in Groundwater Recharge:
  • They would help recharge groundwater, reduce sedimentation, generate Rs. 449.01 crore from non-timber and other forest produce.
• Employment Generation:
  • They are also expected to make a significant contribution towards employment generation by way of nearly 344 million man-days of work.
• Achieving International Commitments:
  • These efforts would help India meet its international climate commitments of:
    • Creating an additional carbon sink of 2.5 -3 billion tonnes of CO₂ equivalent through additional forest and tree cover by 2030 under the Paris Agreement of the United Nations Framework Convention on Climate Change (UNFCCC),
    • Restore 26 million hectares of degraded lands by 2030 and
    • Halt biodiversity loss by 2030 under Convention on Biological Diversity (CBD) and Sustainable Development Goals.
  • At the COP26 meeting, India promised to reduce its projected carbon emission by one billion tonnes by 2030, meet 50% of energy requirements with renewable energy by 2030, enhance non–fossil energy capacity to 500 gigawatt by 2030, reduce the carbon intensity of its economy by 45% by 2030 and achieve net zero emission by 2070.
  • Under the Bonn Challenge, India had also pledged in 2015 to restore five million hectares of degraded land by 2030.

What are the associated Challenges?

• Growing water crisis on account of depleting fresh water resources especially due to shrinking and degradation of river ecosystems is a major impediment to achieving national goals pertaining to environment, conservation, climate change and sustainable development.
• The success of the project hinges on several factors, including the correct method of plantation and changes in climate.

Way Forward

• To avoid risks of plantation and changes in climate, the forest department should ensure the “quality of planting stock, particularly age and size are important aspects,” and that conservation of soil and moisture should be done before plantation to further mitigate risk.

Source: PIB

RBI's Regulatory Framework for Microfinance Loans

Why in News?

Recently, the Reserve Bank of India (RBI) allowed Microfinance Institutions(MFI) the freedom to set interest rates they charge borrowers, with a caveat that the rates should not be usurious.

• The guidelines will take effect 1^st April 02022.
• Earlier in 2021, the RBI proposed to lift the interest rate cap on MFI.

What are the Highlights of the Guidelines?

• Definition of a Microfinance Loan:
  • The RBI revised the definition of a microfinance loan to indicate a collateral-free loan given to a household having annual income of up to Rs. 3 lakh.
    • Earlier, the upper limits were Rs.1.2 lakh for rural borrowers and Rs.2 lakh for urban borrowers.
• For Regulated Entities (REs):
  • As per the revised norms, Regulated Entities (REs) should put in place a board-approved policy regarding pricing of microfinance loans, a ceiling on interest rate and all other charges applicable to microfinance loans.
  • Each RE shall disclose pricing-related information to a prospective borrower in a standardised, simplified factsheet.
• Penalty on Microfinance Loans:
  • There shall be no prepayment penalty on microfinance loans.
  • Penalty, if any, for delayed payment shall be applied on the overdue amount and not on the entire loan amount.
  • Any change in interest rate or any other charge shall be informed to the borrower well in advance and these changes shall be effective only prospectively.
• Recovery of Loans:
  • RE would have to put in place a mechanism for identification of the borrowers facing repayment-related difficulties, engagement with such borrowers and providing them necessary guidance about the recourse available.
    • To ensure due notice and appropriate authorisation, the RE will provide the details of recovery agents to the borrower while initiating the process of recovery.

What will be the Applicability of the Guidelines?

• All Commercial Banks (including Small Finance Banks, Local Area Banks, and Regional Rural Banks) excluding Payments Banks.
• All Primary (Urban) Co-operative Banks/ State Co-operative Banks/ District Central Co-operative Banks.
• All Non-Banking Financial Companies (including Microfinance Institutions and Housing Finance Companies).

What will be the Benefits?

• Expand Market Opportunity: The revision of the income cap to Rs. 3 lakh will expand the market opportunity and interest rate cap removal will promote risk-based underwriting.
• Encourage Healthy Competition: It will go a long way in harmonising the regulatory framework for different types of lenders, encouraging healthy competition and enabling customers to make an informed choice regarding their credit needs.
• Financial Inclusion: The new framework will help scale the industry further, ensure better risk mitigation and financial inclusion.
• Level Playing Field: It will create a level playing field and both borrowers and lenders will now have options.
• Cater the Needy: It will safeguard the interests of the borrowers and help the sector to cater to the needy borrowers.

Source: TH

Flood Plain Zoning

Why in News?

Recently, the Ministry of Jal Shakti has informed the Rajya Sabha that the states of Manipur, Rajasthan, Uttarakhand and erstwhile State of Jammu & Kashmir had enacted the National Floodplains Zoning Policy.

• However, delineation and demarcation of flood plains is yet to be undertaken.
• Earlier, the Comptroller and Auditor General of India (CAG) presented a report on preparedness and response to floods in the Kerala assembly.
  • The report pointed out that the state is yet to enact flood plain zoning legislation, 45 years after the Union Government circulated to all states a model draft bill for flood plain zoning legislation.

What is Flood Plain Zoning?

• About:
  • Flood Plain Zoning has been recognized as an effective non-structural measure for flood management.
  • The basic concept of flood plain zoning is to regulate land use in the flood plains to restrict the damage caused by floods.
• Features:
  • Determining Developmental Activities: It aims at determining the locations and the extent of areas for developmental activities in such a fashion that the damage is reduced to a minimum.
  • Adds Limitations: It envisages laying down limitations on development of both the unprotected as well as protected areas.
    • In the unprotected areas, boundaries of areas in which developmental activities will be banned, are to be established to prevent indiscriminate growth.
    • In the protected areas, only such developmental activities can be allowed, which will not involve heavy damage in case the protective measures fail.
  • Utility: Zoning cannot remedy existing situations, although, it will definitely help in minimising flood damage in new developments.
    • Flood plain zoning is not only necessary in the case of floods by rivers but it is also useful in reducing the damage caused by drainage congestion particularly in urban areas.

What is India’s Status of Vulnerability to Floods:

• India’s high risk and vulnerability is highlighted by the fact that 40 million hectares out of a geographical area of 3290 lakh hectares is prone to floods.
• On an average every year, 75 lakh hectares of land is affected, 1600 lives are lost and the damage caused to crops, houses and public utilities is Rs. 1805 crores due to floods.

What is a Model Bill for Flood Plain Zoning?

• About: The Bill provides clauses about flood zoning authorities, surveys and delineation of flood plain area, notification of limits of flood plains, prohibition of the use of the flood plains, compensation and most importantly removing obstructions to ensure free flow of water.
  • It seeks to replace dwellings in low-lying areas by parks and playgrounds as absence of human settlement in those areas would cut down loss of lives and property.
• Challenges in Implementation:
  • There has been resistance on the part of the states to follow-up the various aspects of floodplain management including possible legislation.
    • The reluctance of the states is mainly due to population pressure and want of alternative livelihood systems.
  • The lukewarm response of the states towards the enactment and enforcement of the floodplain regulations has fuelled a significant increase in the encroachments into the flood plains, sometimes authorised and duly approved by the town planning authorities.

Way Forward

• As floods cause major damage to life and property every year, it is time the central and the state governments prepare a long-term plan that goes beyond piecemeal measures like building embankments and dredging to control floods.
• There is a need for an integrated basin management plan that brings all the river-basin sharing countries as well Indian states on board.

Source: PIB

Phosphorus Bombs

Why in News?

Recently, Ukrainian police has accused Russian forces of launching phosphorus bomb attacks (chemical weapon) in the Lugansk and Donetsk regions of eastern Ukraine, collectively known as the Donbas.

• International law prohibits the use of white phosphorus shells in heavily populated civilian areas, but allows them in open spaces to be used as cover for troops.

What is Phosphorus Bomb?

• Allotropes: White phosphorus munitions are weapons that use one of the common allotropes of the chemical element phosphorus.
• Pyrophoric: White phosphorus is pyrophoric (it is ignited by contact with air), burns fiercely, and can ignite cloth, fuel, ammunition, and other combustibles.
  • Apart from this, it is also used in smoke, illumination, and burning elements of tracer ammunition.
• Chemical Reaction: In addition to its offensive capabilities, white phosphorus is a highly efficient smoke-producing agent, reacting with air to produce an immediate blanket of phosphorus pentoxide vapour.
• Effects: In addition to direct injuries caused by fragments of their casings, white phosphorus munitions can cause injuries in two main ways: burn injuries and vapour inhalation.

What are Chemical Weapons?

• A Chemical Weapon is a chemical used to cause intentional death or harm through its toxic properties.
• Munitions, devices and other equipment specifically designed to weaponize toxic chemicals also fall under the definition of chemical weapons.

What is International Law regarding Use of Chemical Weapons?

• Chemical Weapons Convention (CWC) is a multilateral treaty banning chemical weapons and requiring their destruction within the stipulated time.
• Negotiations for the CWC began in 1980 at the United Nations Conference on Disarmament.
• The convention was drafted in September 1992 and opened for signature in January 1993. It became effective from April 1997.
• It makes it mandatory to destroy old and abandoned chemical weapons.
• Members should also declare the riot-control agents (sometimes referred to as ‘tear gas’) in possession of them.
• India signed the treaty in January 1993. The Chemical Weapons Convention Act, 2000 was passed to implement the CWC.
• Convention Prohibits:
  • The development, production, acquisition, stockpiling, or retention of chemical weapons.
  • Transferring of chemical weapons.
  • Using chemical weapons.
  • Assisting other States to indulge in activities that are prohibited by the CWC.
  • Using riot-control devices as ‘warfare methods’.
• Apart from CWC, Australia Group seeks to check proliferation of chemical or biological weapons.

Source: TH

First Gati Shakti Cargo Terminal

Why in News?

Indian Railways’ first Gati Shakti Cargo Terminal commissioned in Asansol Division in pursuance of the Prime Minister’s vision “Gati Shakti”.

• This is the first such GCT commissioned in Indian Railways since the publication of GCT policy in December 2021
• It is expected to enhance Indian Railways’ earnings. The commissioning of this terminal and more such terminals will have a very positive impact on the economy of the nation.

What is the PM Gati Shakti Scheme?

• About:
  • In 2021 the government launched the ambitious Gati Shakti scheme or National Master Plan for multi-modal connectivity plan, with the aim of coordinated planning and execution of infrastructure projects to bring down logistics costs.
• Aim:
  • To ensure integrated planning and implementation of infrastructure projects in the next four years, with focus on expediting works on the ground, saving costs and creating jobs.
  • The Gati Shakti scheme will subsume the Rs 110 lakh crore National Infrastructure Pipeline that was launched in 2019.
  • Besides cutting logistics costs, the scheme is also aimed at increasing cargo handling capacity and reducing the turnaround time at ports to boost trade.
  • It also aims to have 11 industrial corridors and two new defence corridors - one in Tamil Nadu and other in Uttar Pradesh.
  • Extending 4G connectivity to all villages is another aim. Adding 17,000 kms to the gas pipeline network is being planned.
  • It will help in fulfilling the ambitious targets set by the government for 2024-25, including expanding the length of the national highway network to 2 lakh kms, creation of more than 200 new airports, heliports and water aerodromes.

• Expected Outcomes
  • The scheme will help mapping the existing and proposed connectivity projects.
  • Also, there will be immense clarity on how different regions and industrial hubs in the country are linked, particularly for last mile connectivity.
  • A holistic and integrated transport connectivity strategy will greatly support Make in India and integrate different modes of transport.
  • It will help India become the business capital of the world.
• Need for Integrated Infrastructure Development:
  • There exists a wide gap between macro planning and micro implementation due to the lack of coordination and advanced information sharing as departments think and work in silos.
  • According to a study, the logistical cost in India is about 13% of GDP, which is higher than developed countries.
    • Due to this high logistical cost, the competitiveness of India’s exports is greatly reduced.
  • It is globally accepted that the creation of quality infrastructure for Sustainable Development is a proven way, which gives rise to many economic activities and creates employment on a large scale.
  • The scheme is in synergy with the National Monetisation Pipeline (NMP).
    • The NMP has been announced to provide a clear framework for monetisation and give potential investors a ready list of assets to generate investment interest.

What are the Challenges?

• Low Credit Off-take: Although the government had taken up ‘strong’ banking sector reforms and the Insolvency and Bankruptcy Code had yielded about Rs. 2.4 lakh crore of recoveries on bad loans, there are concerns about declining credit offtake trends.
  • Banks give credit off-takes to help businesses acquire financing for future projects through the promise of future income and proof of an existing market.
• Lack of Demand: In the post-Covid-19 scenario, there is a lack of private demand and investment demand.
• Structural Problems: Due to land acquisition delays and litigation issues, the rate of implementation of projects is very slow on global standards.
  • Getting approvals is very difficult in terms of land access, environmental clearances; also impending litigation in court delays the infrastructure projects.

Way Forward

• PM Gati Shakti is a step in the right direction. However, it needs to address structural and macroeconomic stability concerns, emanating from high public expenditure.
• Thus, it is imperative that this initiative is underpinned by a stable and predictable regulatory and institutional framework.

Source: PIB

Rohingya Muslims in India

Why in News?

Recently, the National Investigation Agency (NIA) has arrested six people who were allegedly part of a syndicate involved in the illegal trafficking of Rohingya Muslims into Indian territory.

Who are Rohingya Muslims?

• Rohingya Muslims are described by the United Nations as the most persecuted minority in the world.
• They fled their homes in 2017 to escape an alleged crackdown by the Myanmarese military.
• To escape discrimination and violence in Myanmar, minority Rohingya Muslims have for decades fled from the Buddhist-majority country to neighbouring Bangladesh and other countries, including India.

What are Issues & Concerns to India’s Security?

• Threat to National Security: The continuance of the illegal immigration of Rohingyas into India and their continued stay in India is found to be having serious national security ramifications and poses serious security threats.
• Clash of Interests: It impacts the interests of local populations in the areas seeing large-scale influxes of illegal immigrants.
• Political Instability: It also increases the political instability when leaders start mobilising the perception of the citizens of the country against the migrants by the elites to grab political power.
• Rise of Militancy: The persistent attacks against the Muslims perceived as illegal migrants have given way to radicalisation.
• Human trafficking: In recent decades, trafficking of women and human smuggling has become quite rampant across the borders.
• Disturbance in Law and Order: The rule of law and integrity of the country are undermined by the illegal migrants who are engaged in illegal and anti-national activities.

Way Forward

• Need for Refugee Protection Framework: In spite of not being a party to the 1951 Refugee Convention and its 1967 Protocol, India has been one of the largest recipients of refugees in the world.
  • Therefore, if India had domestic legislation regarding refugees, it could have deterred any oppressive government in the neighbourhood from persecuting their population and making them flee to India.
• SAARC Framework on Refugees: India should take the initiative to encourage other countries in the South Asia Association for Regional Cooperation (SAARC) to develop a SAARC convention or declaration on refugees.

Source: IE

Increased NPAs in MSMEs

Why in News

Despite a host of loan restructuring schemes and packages announced by the Reserve Bank of India (RBI) and the government, the Covid pandemic has hit the Micro, Small and Medium Enterprises (MSMEs) very hard.

• Gross Non-Performing Assets (NPAs) of MSMEs, or loans defaulted by these enterprises, rose by Rs 20,000 crore to Rs 1,65,732 crore as of September 2021 from Rs 1,45,673 crore in September 2020.
• Bad loans of MSMEs now account for 9.6 % of gross advances of Rs 17.33 lakh crore as against 8.2 % in September 2020.
• Earlier, the Ministry of MSME launched the MSME Innovative Scheme (Incubation, Design and IPR) along with the MSME IDEA HACKATHON 2022.

What was the Effect of Covid on MSMEs?

• The rise in bad loans happened even after the RBI announced four loan restructuring schemes for MSMEs in January 2019, February 2020, August 2020 and May 2021.
  • Loans of as many as 24.51 lakh MSME accounts worth Rs 1,16,332 crore were restructured under these schemes. Under the May 2021 circular issued by the RBI, loans for Rs 51,467 crore were restructured.
• The Sector being among the most pandemic afflicted sectors, thousands of MSMEs either shut down or became sick after the government announced a nationwide strict lockdown in March 2020 in the wake of the Covid pandemic.

What were the Initiatives Taken to Revive the MSMEs?

• To revive activity, the RBI and the government introduced several measures including the Emergency Credit Line Guarantee Scheme (ECLGS) which provided Rs 3 lakh crore of unsecured loans to MSMEs and businesses.
• The RBI also extended the scheme of one-time restructuring of loans to MSMEs without an asset classification downgrade and permitted bank lending to NBFCs (non banking Financial Companies-other than MFIs) for on-lending to agriculture, MSMEs and housing to be classified as Priority Sector Lending (PSL).
• The restructuring schemes and packages didn’t benefit thousands of units which were already in default.
• This is because to be eligible under the ECLGS scheme, borrower accounts were to be less than or equal to 60 days due as on 29^th February, 2020.
  • According to the RBI’s Financial Stability Report, credit to the MSME segment slowed down (year-on-year) by the end of September 2021 vis-a-vis March 2021.
  • The decline was particularly noticeable in the sub Rs 25 crore ticket size across major bank groups.

Source: IE