Corona Impact: 30% MSMEs Will be Closed – Survey Report

Corona Impact, not only corona virus infection, demonetisation and GST are also responsible for the bad condition of MSMEs.

Business activities have started with the lockdown opening. But the difficulties of MSME sector remain. Even though the government has announced a loan package of three lakh crore rupees for this sector, despite this, 30 to 35 percent MSMEs can be closed.

According to a survey conducted by All India Manufacturers Organization (AIMO) with nine other industry organizations, 35% MSME and 37% self-employed businessmen said that now their business cannot stand again. In this survey, 46,425 MSMEs, self-employed businessmen, corporate CEOs and employees were asked questions.

The survey was conducted between 24 May and 30 May. In the survey, 32 percent MSMEs said that they will take six months to recover. Only 12 percent said that the recovery would not take more than three months. Yes, the corporate CEO looked a bit optimistic, who said that there will be a recovery in three months.

Demonetisation and GST also have a profound impact on former head of All India Manufacturers Association K.E. Raghunathan said that the loss of functioning and uncertainty of the future due to the lockdown is a major concern of Micro, Small and Medium Enterprises (MSME). Covid-19 is not the only effect behind the growing apprehension of MSME shut down. Small industries have been facing problems for the last three years.

Demonetisation and GST have had a profound effect on them. Due to slow down, demonetisation and GST in the economy, the debt burden has increased on them. Covid-19 will prove to be the last nail in their coffin. He said that after independence, he had not seen such a large number of industries destroyed.

There are 60 million MSMEs in the country and about 11 crore people are employed in them. It accounts for 45 percent of the total manufacturing output of the country. It accounts for 40 % of the total exports.