The Indian MSME sector has extremely suffered by the unending coronavirus breakdown. Tons of businesses across different sectors have seen extensive economic blow up.
Animesh Saxena, President, Federation of Indian Micro and Small & Medium Enterprise shared some useful insights where they kept a record of the thoughts and opinions of small businesses, and why only a few have started the operations since the lifting of the lockdown curbs.
Even before the pandemic the sector had been under pressure. There were the challenges of settlements not coming on time, and absence of skills and restricted automation being available. These were some of the challenges MSMEs were already facing.
The pandemic has brought desolation on this sector. In terms of the cash flow also as there has been zero revenue coming these months lately. All this has led to a downfall, as if this wasn’t enough; they had fixed costs to take care of, which included salaries, wages, electricity, rentals and more, he further added.
The government’s recent statements have made it clear, especially for the government and PSUs to wrap up all the payments in 45 days which has come as a relief. Now, we have to see on the ground, whether the PSUs do their job, revealed Animesh.