The Indian government announced a new initiative to boost the economy by providing financial aid to small businesses affected by the COVID-19 pandemic. The scheme aims to support micro, small, and medium enterprises (MSMEs) by offering collateral-free automatic loans worth up to Rs 3 lakh crore. This move comes as part of the government’s Atmanirbhar Bharat Abhiyan (Self-Reliant India Mission) to revive the economy and create job opportunities. The loans will have a four-year tenure with a moratorium of 12 months on principal repayment. Additionally, the government will provide a 100% credit guarantee on these loans extended to MSMEs. The scheme is expected to benefit around 45 lakh small businesses, providing them with the necessary financial support to overcome the challenges posed by the pandemic. The government has also introduced other measures to support the MSME sector, including a fund of funds with a corpus of Rs 50,000 crore to help businesses expand and grow. The MSME sector is a crucial component of the Indian economy, contributing significantly to employment generation and economic growth. By providing financial assistance to small businesses, the government aims to stimulate economic activity and pave the way for a swift recovery from the impact of the pandemic. This initiative is a step towards building a self-reliant and resilient economy that can withstand future challenges.