The MSME Conundrum - COVID Troubles for an Already Troubled Sector
India is a land of small entrepreneurs. MSMEs in India - comprising over five crore businesses and employing over eleven crore people - sum for nearly half of India’s production. There are around 6.33 crore MSMEs in the country and they manufacture more than 8000 products.
MSMEs have faced challenges ranging from inadequate access to markets, poorly skilled manpower, poor technology adoption, high cost of capital, challenges in raw material procurement, and inadequate infrastructure. While the Government of India understands it needs to play a greater role in supporting MSMEs - as is evident from schemes like the Atmanirbhar Abhiyan - more needs to be done.
As if these challenges were not enough, MSMEs were hit hard by the COVID outbreak and the resultant lockdowns.
In this research paper, we explore the challenges faced by Indian MSMEs and the support that the government can offer them to help take on a future that looks skewed in favor of large enterprises.
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