Ease of Doing Business for MSMEs: For MSMEs, it is critical to keep their expenses in check and remain solvent in the current scenario. Lack of solvency in the business would further not allow them to take advantage of the normalcy that would eventually return.
Ease of Doing Business for MSMEs: India’s vast micro, small and medium enterprise (MSME) sector is gradually looking at business recovery back to pre-Covid levels. 23 days of Unlock 1.0, which began on June 8, has helped the MSME sector to begin re-scaling as economic activity resumed but with riders, according to MSME experts Financial Express Online spoke with. “Substantive recovery has taken place since unlock 1.0. More than 60 per cent units in the MSME sector are now operating fully or partially. This is a big change. For small units, retailers are a big market, they are the front end. As the market has started re-opening and orders have started coming in, the recovery cycle has, hence, started. However, 100 per cent recovery would take little more time,” Anil Bhardwaj, Secretary-General, Federation of Indian Micro and Small & Medium Enterprises told Financial Express Online.
Across India, MSME units were locked down for nearly two and a half months due to the Covid pandemic. Consequently, operations for many units were squeezed due to little to no revenues even as they were forced to either cut or hold back salaries. Along with this, restriction in public transportation made it tough for the workforce to reach factories and plants for the production of goods while work from home was of little help for such businesses. Hospitality including restaurants, hotels, along with furniture, gym, toys, electrical equipment, textiles, and other sectors took a maximum hit while those in the retail of essential goods such as grocery products, healthcare, etc witnessed more traction amid lockdown.
Source: Financial Express