-Bhumi MSMEs have had a hard setback due to the covid 19 pandemic and the extended lockdown in India. Along with that, their nature of work, small setup, and poor financial condition keep them in a tough spot. MSMEs are the magnate in India’s economy contributing to 48% of exports and providing 110 million employees. It’s essential to assess the barriers, disclose them and find a way to overpower the problem due to the pandemic.
Meanwhile, the Indian government is trying to recover from the crisis and strengthen the sector by raising more money by declaring a 3 Lakhs package as a credit guarantee to financial institutions.
The long-term covid 19 relief plan for MSMEs is –
- The “Smart Industrial Village” Policy:
This policy aims to achieve an inclusive and unbiased development model with the percolation of wealth. It also aims to enable a decentralized financial structure to avoid the concentration of the population resulting in the departure of migrant workers.
- Promoting “Swadeshi” Ideology via Policy & Strategy Drafting:
It aims to promote regional investment in the manufacturing segment through promotion schemes & incentives so that India becomes a manufacturing epicenter. It also aims at introducing an “Indian quality standard & certification” system to provide “non-tariff barriers” cover for incentivizing locally manufactured “SWADESHI” products.
- Access to Information Technology Enabled Services:
Access to ITES at an inexpensive price would bring the MSME sector to a level playing field with bigger players.
- Encouraging Innovation:
To encourage innovation and upmarket MSMEs to withstand global competition. Nurturing innovations through setting up a large number of business incubators in educational organizations.
- Support Mechanism:
Reducing external threats to a bearable level by technologically upgrading the MSMEs. Also, favoring the corporatization of the MSME sector has greatly aided businesses.
- Financial feasibility:
Prioritize lending to MSMEs from banks by including small enterprises in the dedicated priority sector and raising the sub-target limit to 10% from 7.5%.
These initiatives and the resurgence of India’s economy will help in the revival of MSME and firm the sustainability and future opportunity for India’s youth.
