EFFECT OF COVID-19 ON MSME

 

The spread of Coronavirus across the world and imposition of lockdowns and social distancing by government to curb its roll out has led to a huge impairment to the economy of several countries across the world. Some sectors have been hit dismally while others finding the better ways to get through in this downfall. Like other sectors of the Indian economy, MSMEs have been smacked poorly due to lockdown imposed by the government to tackle Covid-19 pandemic. However, even before the current crisis, MSMEs growth has been marred by several challenges due to small scale of operations and limited financial and operational resources. From a worldwide perspective, it has been recognized that micro, small and medium enterprises (MSMEs) play a vital role in economic development, as they have been the primary sources of job/employment creation and output growth, not only in less developed countries but also in developed countries. MSMEs have been accepted as the engine of economic growth and for promoting equitable development.

 

In India, MSME sector usually faces tribulation while any major event is brought out by the government or by the economy drive. Starting from demonetization, implementation of GST to slowdown of the economy MSME sector has already been facing distress. The outbreak of coronavirus has further hit the MSME sector fiercely. MSME sector being a crucial part of the economy shall be dealt with in a very lenient manner. The business activities of non-essential items have been highly impacted due to imposition of lockdown. The business activities of essential items were also impacted due to certain government restrictions, disturbance in smooth trade process and panic among the masses.

 

With the introduction of financial package announced by Finance Minister Smt. Nirmala Sitaraman there shall be a sight of small relief to all the businesses specially MSMEs. With the vision of Prime Minister of India Shri. Narendra Modi to make “AATMANIRBHAR BHARAT” or “self-reliant India” and promote “Make-in-India” the businesses will strive harder and utilize the opportunity outrightly. Economy, Infrastructure, System, Demography and Demand are the strongest pillars of self-reliant India. There is a need to bring a change in the technology and infrastructure sector. With the improvement in technology and infrastructure, other sectors will be benefitted and have an urge to grow with the help utilizing new and advanced technologies. Financial sector is already facing a downfall and there is a great need to improve the financial conditions to support the economy.

 

Being the fastest growing economy, we shall create more awareness about MSME sector and focus on generating more employment, improved industrialization, decrease in imports, increase in exports, updation of technology, competitive businesses, knowledge development, wealth creation and economy growth. By registering and availing the benefits and schemes under MSME will help to achieve the growth and economies of scale. Taking into consideration all the difficult conditions and necessary measures which are already brought up and the measures to be further brought up by the government and various regulatory authorities, MSMEs shall make the best utilization of such measures initiated by government and strive harder to sustain and grow in the affecting economy.