Question : Impact of Covid on MSME Sector

(a) whether Covid-19 pandemic had a very severe adverse impact on the entire MSME sector in the country;

(b) if so, the details thereof;

(c) whether the Covid-19 pandemic placed MSME owners, employers, workers and institutions associated with the MSME sector into a very difficult state where no one had any experience to handle this kind of situation;

(d) if so, the details thereof;

(e) the extent to which the Covid-19 pandemic adversely impacted MSMEs‘ earnings; and

(f) the steps taken or proposed by the Government to revive the MSME sector?

THE MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI NARAYAN RANE)

(a) to (f): The adverse impact of Covid-19 pandemic has been felt on the economy including on the MSME sector. To revive the MSME sector, the Government has taken the following steps:

i. Rs. 20,000 crore Subordinate Debt for MSMEs.
ii. Rs.3 lakh crores Collateral free Automatic Loans for business, including MSMEs.
iii. Rs. 50,000 crore equity infusion through MSME Self-Reliant India Fund
iv. New Revised criteria of classification of MSMEs.
v. New Registration of MSMEs through ‘Udyam Registration’ for Ease of Doing Business.
vi. No global tenders for procurement up to Rs. 200 crores.

An Online Portal “Champions” has been launched on 01.06.2020 by Hon’ble Prime Minister. This covers many aspects of e-governance including redressal of grievances and handholding of MSMEs.

RBI has also announced several measures to Reduce Financial Stress of MSMEs.