Among some of the measures announced include the establishment of a corpus of Rs 1 lakh crore to give interest-free loan for tech-savvy youth to spur innovation.
The role of manufacturing MSMEs, in particular, will prove significant in Indias economic aspirations as a nation. The MSME sector in India employs over 100 million people and accounts for 45% of manufacturing output and over 40% of the countrys exports.
Synopsis
The year 2020 brought distress and damage aplenty for the MSME sector. Can the next year herald a new beginning for them?
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Will 2021 herald a new beginning for a sector dubbed as the ‘growth engine’ of the economy?
The year gone by may well have been the worst nightmare that came true for the MSME sector. Already reeling under the impact of delayed payments and slowdown in demand in 2019, the sector had long been facing its share of turmoil.
But absolutely nothing could have prepared it for the eventuality that was to follow. The coming of the virus and the resultant lockdowns that were announced was the final blow for a sector, often referred to as the ‘backbone’ of the Indian economy. And for a good reason. India is home to over 60 million MSMEs, accounting for 30% of India’s GDP and 40% of the overall exports in the country.