MSMEs: Back to the grind, but not out of the woods
The Covid-19 pandemic and the protracted lockdown severely affected India’s 6.3 crore micro, small and medium enterprises (MSMEs). The government of India (GoI) announced several support measures like credit guarantee schemes, loan restructuring measures, moratorium and deferment of interest payments on borrowings, and a few others under the broad umbrella of Atmanirbhar Bharat initiatives to help the sector come out of the woods. Did such policies have any positive impact on the sector’s revival prospects? A recent Assocham-Crisil report titled MSMEs back to the grind suggests so, based on the following. First, the sector will likely see a pro-cyclical growth in revenue of around 15-17% in FY22 and between 11-13% in the ongoing fiscal.