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Sunday, April 12, 2020

COVID-19 pandemic to hit MSME exporters more

Micro, small and medium enterprises (MSME) exporters will be impacted more by the current lockdown on account of COVID-19 pandemic as the sector accounts for over 45 per cent of the country’s total outbound shipments, according to trade experts. They said the magnitude of the impact on MSME exporters can be gauged from the statement of the World Trade Organisation (WTO) which has projected that global trade in goods is set to decline steeply between 13 per cent and 32 per cent in 2020 as countries across the world are battling the pandemic.

 India will suffer very badly and the biggest impact will be on the MSME exporters. They will also face issues in calling back their workers as several of them have migrated to their villages and towns.

India’s major export items such as petrochemicals, gems and jewellery, automobiles and auto components, cotton yarns and textiles, apparels, marine products, bovine meat among others are likely to receive a jolt primarily due to slump in demand in its major markets and disruption of supply chains which are integrated across countries.

This is the time India should transform this calamity into an unprecedented opportunity to make India the manufacturing hub and realize its ‘Make in India’ objective in real sense,” he added. Assistant professor and expert on agriculture economics Chirala Shankar Rao said there is a need to give special focus to MSME exporters engaged in agri products as there is a surge in demand for food products in global markets due to coronavirus outbreak.

 World trade is expected to fall by between 13 per cent and 32 per cent in 2020 as the COVID-19 pandemic disrupts normal economic activity and life around the world.

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