Before the general elections, the government is considering a Insurance scheme for the lakhs of small and medium-sized merchants enrolled in the GST, to address some of the concerns of this segment.
This could be based on the system put in place by the Government of Uttar Pradesh for traders.
The plan, if approved by the government, should be announced by the end of the month before the start of the budget session, the sources added.
PMSBY currently provides Rs 2 lakh accidental coverage just at an affordable rate of Rs 12 per year. The program is accessible to people from age group of 18 to 70 years old with a savings bank account who agree to join and authorize self-debiting by May 31 of each year.
A special policy could be formulated to encourage women entrepreneurs, sources said, adding that a higher interest subsidy would also be considered for these entrepreneurs.
Among the public contracts ordered from small traders, a certain percentage could be reserved for women entrepreneurs.
Last year, the government announced 59-minute loan sanctions, a relaxation of labor laws, easier compliance with environmental rules, and changes in corporate laws for small businesses. medium-sized enterprises in order to revive the country's second largest employment sector.
the General elections are due in the coming months.