MVIRDC World Trade Center Mumbai released its research study titled ‘Impact of COVID-19 on Indian MSMEs: Bringing Them Back on Track’ which prescribed nine-point agenda to revive India’s MSME sector from the adverse impact of the spread of corona virus. The release of the study was at a time when the Reserve Bank of India and Government of India announced relief and economic measures which were part of the Atma Nirbhar package to combat disruptions in processes of businesses across sectors.

The Study was released at an event held at the World Trade Center Mumbai.

On the occasion, Mr. B. C. Bhartia, National President, Confederation of All India Traders suggested that an audit of bank loan disbursements during the pandemic should be conducted in order to ensure that the liquidity easing measures of the government and RBI are percolated to the lowest rung of MSMEs. He further opined that the purchasing power of rural MSMEs should be increased in order to maintain a balanced economy.

Mr. Bhartia remarked, India should be projected as ‘The biggest production market of MSMEs to cater to the world’s biggest consumption market i.e. India’. MSMEs should be encouraged to adopt digitalisation.

Mr. Anil Bhardwaj, Secretary General, Federation of Indian Micro and Small & Medium Enterprises said that the prolonged slowdown can lead to insolvencies as businesses have had to pay salaries and other statutory dues even in the absence of income. Direct benefit transfers and compulsory procurement from MSMEs have enabled demand-creation.

In order to reduce the impact of the crisis on informal sector, Mr. Bhardwaj suggested that government needs to enact measures such as realistic identification of NPAs, formulation of rules under IBC for proprietorship and partnership firms, and payment of dues to MSMEs by large firms that have gone into insolvency.

Dr. Sunil Shukla, Director General, Entrepreneurship Development Institute of India remarked that Indian MSMEs have shown resilience in the face of the crisis. He opined that medical disposable and sanitisation products, pathology services, healthcare service delivery and healthcare data management will see opportunities rise in future, besides, organic fruits and vegetables, small car manufacturing, and renting and repair services.

Ms. Rupa Naik, Senior Director, MVIRDC World Trade Center Mumbai in her welcome remarks mentioned that the COVID-19 crisis has brought about new vistas of production and exports have in certain labour-intensive sectors such as handlooms and handicrafts, several agricultural and pharmaceutical products have picked up. Ms. Naik suggested the government to provide labs and other facilities for testing product quality and standards, to reduce dependence on facilities owned by foreign companies.