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Ripple effect of covid-19 on msme sector and road ahead msmes

Author: 
Dr. Debdas Rakshit and Ananya Paul
Subject Area: 
Social Sciences and Humanities
Abstract: 

Background: The micro, small and medium enterprises (MSMEs) is the cornerstone of the Indian economy that enables the economic environment to progress leap and bounds. It is considered as the economic growth engine since it helps in fostering equitable and inclusive growth. But, this sector has been badly hit due to the pandemic outbreak. The MSMEs are faltering under crisis by chocking its operational activities and are not in a position to pay their employees, creditors and other dues. So, this sector should be strategically managed as it is cardinal for the Indian economy owing to its ginormous contribution in Indian GDP, exports, production, employment generation, and industrialization of rural areas. Objectives: Therefore, this paper highlights the repercussions of covid-19 on the MSME sector and outlines the strategies that should be adopted by MSMEs to overcome this turmoil. Moreover, certain suggestions are proposed that may help in the development of the MSME sector in India. Result and Conclusion: When will the current situation return to normal is unknown, so the MSMEs should strategically devise their activities towards gradually resuming their business operations and plan for structural modifications in their businesses.

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