Impact of Covid-19 on micro small and medium enterprises (MSMEs): An overview
B Suresh Lal, Phalguni Sachdeva, Simran, Tanu Mittal
The Micro, Small and Medium Enterprises (MSMEs) sector is a significant pillar of the Indian Economy that accounts for 30% of gross domestic product (GDP) and 45% of merchandise exports. India has a total of 63.3 million MSMEs, creating employment of about 70 million, manufacturing more than 6000 products. It requires lower investment, machines and equipment, raw materials, consumption of energy and other resources which help to run MSMEs. COVID-19 has influenced the Indian Economy in all the possible ways of which Lack of financing and liquidity crunch are one of them. It also examines issues which are near related to MSMEs are Double whammy of supply-demand disruptions, Lack of labour force, Credit and liquidity conundrum, Logistical woes and other challenges. However, government consolation measures if effectively enforced and administered, can rejuvenate the MSME sector by building economic resilience that can further accelerate the sectoral growth and the process of technological and infrastructural improvement.