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Resource centre on India's rural distress
 
 

How To Enable MSMEs To Recover From The Lockdown -Shreehari Paliath

-IndiaSpend.com

Bengaluru: In the aftermath of the COVID-19 epidemic and two months of stringent lockdown, India now faces the crises of unemployment and business closure, particularly in the micro, small and medium enterprise (MSMEs) sector. A new report by the Council on Energy, Environment and Water (CEEW) and the National Institute of Public Finance and Policy (NIPFP) has proposed that MSME recovery can be speeded along by:

* Identifying micro, small and medium enterprises and their workers
* Developing a vulnerability assessment framework of MSME sectors
* Increasing the capacity of the Samadhaan system to expeditiously clear government dues
* Improving the creditworthiness of small businesses.

Among other issues about economic recovery, the report has noted that the reshaping of the economy needs “a new social contract between the state, the citizen and the enterprise” which, it says, rests on “two pillars: commitment to jobs, growth, and sustainability; and a razor-sharp focus on tail-end risks”.

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