Among all the sectors in India that are engaged in economic activities irrespective of sizes that have been affected by the continuing lockdown, there will be little doubt that Micro, Small & Medium Enterprises (MSMEs) are the most severely affected. Although the central economic relief package of 1.7 lakh cr has been announced, there is a growing discontent among millions directly or indirectly engaged with this sector that very little of this package actually contains any specific balm for them. It’s thus urgently necessary that a package specifically targeted to address the woes sinking this highly employment-oriented sector be announced by central government, since, returning back to normalcy have just been initiated with relaxed norms that define lockdown 3.0.

It’s matter of fact that can be corroborated with figures that MSMEs over the decades, have always made a three-fold contribution to the Indian economy in terms of GDP, exports and employment generation. This sector has often been termed as ‘heart’ of the larger industrial ecosystem and but for it, the long ancillary supply chain that caters to the behemoths would not have been kept alive and the positive role it has played is always counted as the principal factor of industrial progress recorded so far since independence, inclusive of the 1991 post liberalisation era. Among many sets of figures that can be taken to explain the importance of MSMEs, taking into account the overall Indian economy, it is factually true that more than 11 cr people are employed in this sector alone which is nearly 40% of the total industrial work force and almost 30% of the GDP has its origin in these tiny units scattered in every nook and corner of the country.

But, even if studies are currently on to measure the quantum of losses that has engulfed this sector due to the lockdown, it is not hard to understand how gravely it has been hit. Due to chocking of all transactional activities that normally keep in motion the working capital input channels, surviving now in really a challenge, unless a stimulus package is announced urgently. No production means no sale and consequently no revenue earnings. But the fixed overheads like charges on electricity, water, rent etc keep mounting and the cumulative volumes will be quite impossible for most of the units to bear, according to various observers. Looking over the global scenario, it can be seen how promptly even the industrially advanced countries of  US, UK, Germany and China have stood beside their small enterprises and has professed to do so until the level playing field is attained.

MSMEs which have been solid contributors to the national economy are bleeding. Government must come to their rescue at once with suitable relief package.