The Economic Package Explained | Part 1 — The MSME Bailout. In today's newsletter, we decode parts of the "20 lakh crore" Economic Package. Fair warning though. It's longer than our usual 3-minute read. But if you are looking to make sense of what happened yesterday, we can assure you that you won't find a more accessible story than this one. Policy The Story The world of economics is built on a simple premise. Offer people the right incentives and you can get them to do almost anything. So when the Government of India decided to classify institutions as Micro, Small, and Medium Enterprises (MSMEs) they were trying to set up an incentive structure to usher a new era of growth. And the incentives are damn attractive. Cheap loans, fewer compliance standards, tax benefits, and host of other freebies. But as you keep growing — from Micro to Small and Small to Medium, the government will ween you off the support system and put you on a pat
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