Revival of MSMEs signals Covid woes thing of past
After two consecutive years of low credit disbursal, micro small and medium (MSME) enterprises have reported a healthy credit offtake in the last fiscal year. As of March 31 this year, banks have reported 95 percent disbursal of their annual target as compared to the 65 percent disbursal in 2020-21 fiscal.
MSMEs, often called the backbone of the industrial sector, were among the worst-hit during the Covid-19 pandemic and the lockdown. Labour shortage, drying up of orders, and liquidity crunch had hit the sector which comprises vendors and sub-vendors of bigger companies. Micro units were the worst hit as they, being the last in the value chain, saw business evaporate almost overnight. Credit offtake in the sector had reflected this.