The spread of Coronavirus had ripple effects of all forms to the economy of several countries across the world. Some sectors have been hit dismally while others finding the better ways to get through in this downfall.
Like other sectors of the Indian economy, MSME sector has been smacked poorly due to lockdown imposed by the government to tackle Covid-19 pandemic. However, even before the current crisis, MSMEs growth has been marred by several challenges due to small scale of operations, limited financial and operational resources.
From a worldwide perspective, it has been recognized that micro, small and medium enterprises (MSME) play a vital role in economic development, as they have been the primary sources of job/employment creation and output growth, not only in less developed countries but also in developed countries. MSMEs have been accepted as the engine of economic growth and for promoting equitable development.
In India, MSME sector usually faces tribulation while any major event is brought out by the government. Starting from demonetization, implementation of GST to slowdown of the economy MSME sector has already been facing distress. The outbreak of coronavirus has further hit the MSME sector fiercely.
The MSME sector being a crucial part of the economy shall be dealt with in a very lenient manner. The business activities of non- essential items have been highly impacted due to imposition of lockdown. The business activities of essential items were also impacted due to certain government restrictions, disturbance in smooth trade process and panic among the masses.
With the introduction of stimulus package by Finance Minister Nirmala Sitaraman there shall be a sight of small relief specially to MSMEs. With the vision of Prime Minister of India Shri. Narendra Modi to make “AATMANIRBHAR BHARAT” or “self-reliant India” and promote “Make-in-India” the businesses will strive
harder and utilize the opportunity out-rightly. Economy, Infrastructure, System, Demography and Demand are the strongest pillars of self-reliant India. There is a need to bring a change in the technology and infrastructure sector.
With the improvement in technology and infrastructure, other sectors will be benefited and have an urge to grow with the help utilizing new and advanced technologies. Financial sector is already facing a downfall and there is a great need to improve the financial conditions to support the economy.
Being the fastest growing economy, we shall create more awareness about MSME sector and focus on generating more employment, improved industrialization, decrease in imports, increase in exports, updation of technology, competitive businesses, knowledge development, wealth creation and economy growth.
By registering and availing the benefits and schemes under MSME will help to achieve the growth and economies of scale. Considering all the difficult conditions, the MSME sector can utilize this opportunity to thrive during tumult times like these. Ensuring the same will let them strive harder to sustain and grow in the affecting economy.
About the Author-
Darshita Shah is an Associate Member of the Institute of Company Secretaries of India (ICSI) and a Commerce Graduate (B.com.) having an experience with a reputed firm. She is also a consultant for corporate laws and foreign exchange laws. She has a working experience under Corporate Law, Securities Law, FEMA, Income Tax, legal drafting, review of agreements, other consultancy services, etc. and other regular compliances of Companies and LLPs. She has been writing for some renowned blogs along with her own blog at CS Darshita Shah