Bikky Khosla | 02 Aug, 2021
official statement last week mentioned about two recent studies conducted by
NSIC and KVIC on the impact of the Covid-19 pandemic upon their scheme
beneficiaries. The NSIC survey evaluates the challenges faced by its beneficiaries amid the pandemic, while the KVIC
study is about the impact of the pandemic on units set up under Prime Minister’s Employment Generation
Programme (PMEGP). The findings are interesting.
The NSIC study found 91%
MSMEs to be functional, but unfortunately majority of these units have been
facing a number of challenges, as regards to liquidity (55% units), fresh
orders (17% units), labour (9% units), logistics (12% units) and availability
of raw material (8% units). These findings are not at all encouraging and they
reflect the hardship being faced by the overall MSME sector during these
Similarly, the KVIC study
found 88% of the beneficiaries of PMEGP scheme hit hard by Covid-19. Among those who were affected, 57% stated that
their units were shut down for some time during this period, while 30% reported
drop in production and revenue. Most importantly, majority of the beneficiaries
expressed the need for additional financial support, relaxation of waiver of
interest and marketing support for their products.
The above studies point
out to the fact that though the Centre has taken several steps to help our MSMEs
and startups to counter the impact of Covid 19,
they need more support at this crucial juncture to return to the growth path. It
is also notable here that a large fraction of small enterprises operate
in the informal, unorganised sector, and the Centre should strain
every nerve to identify and solve their problems as well.
invite your opinions.