A STUDY ON PROJECTIONS OF ECONOMIC IMPACT OF COVID19 ON MICRO, SMALL &MEDIUM SCALE INDUSTRIES IN INDIA
Keywords:MSMEs, Covid-19, Economic impact, Relief package, GDP.
MSME is one sector in India that has suffered badly due to the Covid-19 pandemic. A huge cut in demand, non-availability of labor, problems with finance and other resources for supplies has put the sector right on the mat. Unfortunately, the MSME has the most vulnerable business model for failure as they are quite dependent on the large-scale sector. So if the large-scale sector goes down, MSMEs will have to bear a larger brunt at the hands of the large-scale sector. This paper reviews the short-term, medium-term and long-term repercussions of Covid-19 on the Indian MSME sector. It also reviews the relief package of the Government for the revival and support of the MSME. Short-term, medium-term and long-term projections of the economic impact have been made in the light of various macro and microeconomic factors.