SHOCKING SURVEY RESULTS ON SMALL BUSINESSES IN INDIA
As the first phase of the lockdown has been released, many small businesses have been allowed to resume their operation with many guidelines on safety has been put in place. According to a survey by the All India Manufacturers’ Association (AIMO) in association with nine other industry bodies revealed that more than 33% of the self-employed and small and medium businesses don’t perceive any recovery and are in the danger of winding up.
The survey was conducted among 46525 organizations that include MSMEs, independently employed, corporate CEOs, and workers.
SMALL BUSINESSES STRUGGLING
The survey also revealed that 35 percent of Micro, Small and Medium Enterprises (MSMEs) and 37 percent of the independently employed respondents said their undertakings were past recovery, 32 percent of MSMEs said recovery would take a half year. Only 12 percent anticipated recovery in under a quarter of a year.
KE Raghunathan, previous president of the AIMO said that the downsizing of activities, vulnerability about future requests are among the central point concerning small business and medium enterprises, yet the explanations behind winding up organizations may not be totally because of the pandemic.
India has seen probably the harshest lockdown on the planet, with gradual relaxations for the resumption of economic exercises being permitted after the third stage that finished May 17. With increasing COVID cases in states including Maharashtra, Gujarat, Tamil Nadu, and Delhi have presented difficulties for full resumption of economic movement.
As per GDP information discharged a week ago by the National Statistical Office, the nation’s development rate dropped to an 11-year low of 4.2 percent in 2019-20.
The AIMO review likewise demonstrated that 3 percent of MSMEs, 6 percent of corporates, and 11 percent of the independently employed respondents expressed they will remain unaffected and will keep on progressing admirably since they were occupied with flexible supply of basic administrations during the lockdown.
MSMEs, which are more than six crores in number in the nation and utilize an expected 11 crore, are worried due to draining inner saves and demand. MSMEs compensate for around 45 percent of the nation all out assembling yield, 40 percent of fares, right around 30 percent of the national GDP and work over the supply chain.
The government has reported crisis credit lines from banks and NBFCs to MSMEs of up to 20 percent of their exceptional credit as on February 2, 2020, with these advances having a four-year tenure, a year ban on head installments, and a top on premium expenses. An aggregate of Rs 3 lakh crore is anticipated to be dispensed under this plan will be open until October 31, 2020.
Click here for more news and articles