The coronavirus outbreak has brought the world to a grinding halt. India too is fighting a life and death battle to flatten the curve. On April 14, Prime Minister Narendra Modi announced the extension of the lockdown across the nation till May 3, albeit with some relaxations.
The coronavirus pandemic is a unique situation. Governments across the world are grappling with the crisis and struggling to understand how to stop the global economy from falling into vicious economic traps. India is one such place where businesses are suffering and the spread of the virus has spelt doom for the entire ecosystem. The World Bank recently forecast India’s growth estimates between 1.5 percent and 2.8 percent whereas the International Monetary Fund (IMF) announced the growth estimate to stand at 1.9 percent for India following the impact of the pandemic and the lockdown.
More than 65 million micro, small, and medium enterprises (MSMEs) in the country form the backbone of the economy. The segment is in dire need of relief packages, support in working capital loans, and strengthening or fixing of supply chains which have been disrupted, among other needs. MSMEs in India are not only important for their contribution to the Gross Domestic Product (GDP) which is around 30 percent but also for mass employment they create.
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