ARTICLE | Businesses & Pandemic
MSME Sector is Bleeding
what is the cure? The businesses in cities have taken a bad hit due to the pandemic and subsequent lockdown. The COVID-19 has thrown unparalled economic challenges. In India every sector of the economy is bleeding but one of the biggest sufferers is MSME sector
Akshit Pushkarna Editorial Assistant
T
he COVID-19 lockdown has effectively shutdown the small and medium scale businesses based in the cities of India. In a bid to curtail the spread of the novel coronavirus, the nation wide lockdown that got extended for three times saw business owners, outside of essential businesses, out of work for a time period that was initially expected to be end in 21 days. It appears that it would be a long haul for the sector to be back in business with its full potential. All India Manufacturers’ Association (AIMO), recently did a survey to asses
30 June 2020 | www.urbanupdate.in
the damages of the lockdown. The result of the survey is alarming. It covered 46,525 MSMEs, selfemployed, corporate CEOs and employees. The report said that 33 per cent of small businesses and self-employed businessmen stands no chance of recovery. Now, as the Central Government has gone for unlocking and reopening of almost all the businesses even as the cases continue to mount, the big question is how long will it take to for the sector to recover completely. Crores of jobs have been lost because the owners were not able to pay their employees because of no warning while they themselves survived on their savings. Those who lost jobs went back to their villages and home towns and in short run likely to cause a shortage in work force.
Addressing the issue
Sensing the urgency to revive the economy, the Union Government announced an economic package of about `20 lakh crores, allocating a substantial amount to MSME sector. Prime Minister Narendra Modi while addressing the importance of reviving the MSMEs and hence, the economy under their Aatma Nirbhar Bharat Abhiyan, took to the twitter. He tweeted “To give impetus to the selfreliant India campaign, we have not only changed the definition of MSMEs sector, but have also approved several proposals to revive it. This will benefit the small and medium scale industries, as well as create huge employment opportunities.” The important thing is that out of the `20 lakh crores, only `3 lakh crores have been announced
