Getting back to work post the lockdown will depend a lot on the ability of the enterprises to get back the economy on its feet. There are about 63 Million Micro Enterprises, 0.3 Million Small Enterprises and 5,000 Medium Enterprises. These enterprises are the bedrock of this economy and will help the economy recover. But what has happened to them in the past month?
Govindraj Ethiraj speaks to Shreekant Somany, Chairman of MSME National Council, CII and Radhika Pandey, Fellow, National Institute of Public Finance and Policy (NIPFP) about this.
Here are a few points that were made during the discussion:
* Massive supply chain disruptions due to the COVID-19 lockdown
* 15% increase in the present working capital required
* Huge amount pending from Central & State PSEs
* Almost Rs 6 lakh crore to be paid to MSMEs
* Getting back to work after the lockdown ends means only a few sectors will open which further indicates that the entire value chain connected to the sector needs to open and with it required corridors for movement also need to be planned out.