There are around 69 million (6.9 crore) micro, small and medium enterprises, or MSMEs in India, which have been closed for a long time due to the lock-down. According to Global Alliance for Mass Entrepreneurship (GAME) Chairman Ravi Venkatesan, if the lock-down in the country increases for 4 to 8 weeks, about a quarter of the 1.7 million MSME shops will be closed. Quoting data from the All Indian Manufacturers Association, Venkatesan said that if the Coronavirus crisis escalates for four to eight months, 19 to 43 percent of MSMEs in India will disappear.
Fund of $ 100 million will be made
Ravi Venkatesan, the Infosys co-chairman and chairman of Bank of Baroda, said that GAME is in the process of creating a fund of about $ 100 million to save small businesses from this crisis. This fund can be released within the next two weeks. Under this, loans will be given for small businesses at low-interest rates. About 90 percent of the jobs arise from India’s MSME sector, which could end if the lockdown will continue like this. According to Venkatesan, jobs from every sector of MSME can be lost. He said that in the hospitality industry, which employs 4 crore people, about 1.2 crore jobs can be lost. At the same time, 1.1 million jobs can be lost from the retail industry employing 4.6 crore people.
MSME is the largest sector to employ people
out of the total workforce of India, 93 percent i.e. around 400 million people mainly come from the temporary sector, while about 93 million people are those who get seasonal employment. All these workers are suffering due to coronavirus. According to Jindal Global Law School, 75% of people are self-employed when it comes to temporary employment in India. That is rickshaw pullers, carpenters, Plumbers, etc. These workers do not get the benefits of paid leave, or any medical facilities.
The biggest impact is on MSME sector
According to researcher Rakesh Shukla, daily wage laborers are suffering the most due to coronavirus. Around 25 to 30 percent of the people in urban areas work on daily wages. The country’s 75 million MSMEs are the pillars for growth of the Indian economy, creating around 180 million jobs. It also speeds up the economy by about $ 1183 billion. Out of this only, 7 million MSMEs are registered.