Covid-like credit cover for MSMEs by next week

THE LOAN REPAYMENT moratorium may be initially for six months and could be extended by another six months, depending on how the US tariff issue is settled.

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Post-moratorium, MSMEs will likely be given two years to repay loans.

The US government imposed a 25% additional reciprocal tariff on Indian imports effective August 7, and raised the overall levy to 50%, with a 25% penal tariff linked to Russian oil purchase taking effect from August 27.

About 40-50% of India's marine exports and nearly a quarter of its textiles and garments exports are to the US. These sectors being substantially dependent on the US market, exports will be hit as they won't find replacement markets immediately. So, these sectors will get priority in the designing of short-term relief, the sources said.