How, in your opinion, has COVID-19 affected the MSME sector?
The micro, small and medium enterprises (MSME) sector catalyses growth across the different socio-economic-regional strata of our communities. They account for 31% of India’s gross domestic product (GDP) and 45% of the country’s exports. The sector employs 124 million persons.
A large number of MSME organisations are start-ups. In fact, India has the world’s second-largest start-up ecosystem. The community has demonstrated exemplary ingenuity in the country’s efforts to overcome the pandemic. While the MSME sector is the strength of our economy, it was also the most vulnerable due to the COVID-19 induced lockdowns.
How will the government’s initiatives help in reviving the sector?
The government has been channelising its focus to protecting the MSME-sector at all costs. Recently, Prime Minister Narendra Modi announced a stimulus package of INR 20-lakh-crore. The amount is equivalent to about 10% of India’s GDP and is aimed at reviving the stalled economy. The stimulus is among the most substantial in the world. The response inspires confidence in the government’s approach to the COVID-19 challenge.
Since the outbreak of the pandemic, the Reserve Bank of India (RBI) has introduced measures to revive the sentiments amid the coronavirus gloom – a significant number of these are focused on MSMEs. Further, the Atmanirbhar Bharat Abhiyaan is a critical initiative to promote local products and brands which are mostly manufactured by MSMEs. These will go a long way in addressing the challenges faced by the sector. They will boost liquidity, restore confidence among entrepreneurs and encourage enterprising minds to start a business.
How do you think will the Atmanirbhar Bharat Abhiyaan help in reviving India’s MSME sector?
The Atmanirbhar Bharat Abhiyaan holds the potential to transform India’s entrepreneurial trajectory. If implemented effectively, it can change our nation’s destiny and catapult India to the USD 5 trillion club. Even if we foster just 4% of the existing population to pursue entrepreneurship, we can build a repository of around five crore start-ups. It is safe to assume that each of these organisations would employ anywhere between 5-100 persons during the initial years. The multiplier effect on the economy and employment is evident.
What, according to you, will be the critical factors in the success of the Atmanirbhar Bharat Abhiyaan?
The key to the success of the Atmanirbhar Bharat Abhiyaan is its implementation in a time-bound manner. Only then can the economy derive maximum benefits from the forward-thinking strategy. I am confident that joint efforts by all stakeholders will help in moderating the post-Covid19 slowdown curve and enable the economy to deliver a sharp V-shaped turnaround in FY22.
What is your outlook of the COVID-19 situation?
The outbreak of the pandemic is one of the toughest situations faced not just by our country but the entire world. Even though economies are beginning to revoke lockdown orders gradually, the future remains uncertain. However, I’m hopeful that we’ll emerge stronger from the crisis. I want to quote Shri Shaktikanta Das, Governor, Reserve Bank of India, in this context, “Although social distancing separates us, we stand united and resolute. Eventually, we shall cure; and we shall endure.”
