Coronavirus lockdown: One in three MSMEs on the verge of winding up, says AIMO survey
The survey added that the government's stimulus package doesn't apply to start-ups that account for around 11 per cent of the MSME sector in India
- Jun 2, 2020,
- Updated Jun 2, 2020 10:53 AM IST
Over one-third or 35% of the micro, small and medium enterprises (MSMEs) and 37% of independent businesses (self-employed individuals) are on the verge of shutting shop as they see no grounds for a recovery in view of the coronavirus outbreak, according to a survey by the All India Manufacturers' Organisation (AIMO).
The other 32% of the MSMEs said that recovery would take around 6 months, while only 12% expect it in three months.
The COVID-19-induced lockdown has impacted the economy and businesses with the MSME sector taking the hardest hit.
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He added that "This sector will not see many closures but will see many people losing jobs, scaling down of operations, focus on core business and a fine financial balancing act."
Finance Minister Nirmala Sitharaman announced several measures last month to aid the MSME sector, comprising collateral-free loans of Rs 3 lakh crore and an equity infusion of Rs 50,000 crore in small businesses through a fund of funds.
Over one-third or 35% of the micro, small and medium enterprises (MSMEs) and 37% of independent businesses (self-employed individuals) are on the verge of shutting shop as they see no grounds for a recovery in view of the coronavirus outbreak, according to a survey by the All India Manufacturers' Organisation (AIMO).
The other 32% of the MSMEs said that recovery would take around 6 months, while only 12% expect it in three months.
The COVID-19-induced lockdown has impacted the economy and businesses with the MSME sector taking the hardest hit.
Also Read:
He added that "This sector will not see many closures but will see many people losing jobs, scaling down of operations, focus on core business and a fine financial balancing act."
Finance Minister Nirmala Sitharaman announced several measures last month to aid the MSME sector, comprising collateral-free loans of Rs 3 lakh crore and an equity infusion of Rs 50,000 crore in small businesses through a fund of funds.