Part of: GS Mains III – Indian Economy and issues related to it; Growth and Development
About:
According to a report from a group of experts on the post-COVID-19 economic and industrial revival –
Around 20-40% MSMEs facing closure
Smaller units in the MSME sector suffered from the effects of demonetisation in 2016 and also from the introduction of GST in 2017
MSMEs have been hit again by the three-month lockdown and due to the uncertainty about the pace of recovery
Do you know?
Closure of MSMEs could create a serious employment problem, which could further lead into a social crisis.
Measures:
National report for MSMEs by Global Alliance for Mass Entrepreneurship (GAME) outlines a three-stage approach consisting of ‘survive, revive and thrive’.
Survival is the first priority and the aim should be to ensure that large numbers of MSMEs are not immediately wiped out.
However, those that survive will need to be helped to revive as the economy gets back to normal.
There is a need to address the long-term objective of how MSMEs can actually thrive and support a faster growth rate for industry.
