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Corona’s second wave hits MSME, Assocham demands relief package

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Assocham believes that the Central and State Governments should come together to help MSMEs so that this group of industries can get focused, targeted and right-of-way relief.

MSME Sector

The second wave of Corona in the country has hit small industries. In view of this, the Industry Board Assocham (ASSOCHAM) has asked the government to demand a structured relief package for cottage, small and medium industries (MSME) most affected by the restrictions imposed in the wake of COVID-19 Pandemic. That the scope of financial benefits and concessions given to small and street, street shopkeepers should be increased.

Vineet Aggarwal, President, Assocham and Managing Director of Transport Corporation of India Limited, said that the COVID-19 epidemic has had the greatest impact on industries, especially MSMEs. In such a situation, a relief package should be given to MSMEs.

He said, while giving relief package to MSMEs, special care has to be taken that its benefits reach the most affected areas of MSMEs. Assocham believes that the Central and State Governments should come together to help MSMEs so that this group of industries can get focused, targeted and right-of-way relief.

Government without increasing the working capital limit without guarantee

Agarwal said, if the government instructs banks to increase the working capital limit of MSMEs by up to 20% without collateral, reclassify the NPAs of MSMEs and increase the scope of financial benefits to small and track shopkeepers to make it more rational and fair. If you make it compatible then it will give a lot of relief.

The Assocham President said that as we saw in the first wave also that large companies had recovered relatively fast from the shock of lockdown, but the MSME sector had to suffer a lot. Not only the demand for their products decreased but they were also not paid in time.

If we look at MSMEs related to service sector such as tourism and hospitality sectors, then the challenges before them are much bigger. In the coming time, more misfortunes will come in front of those MSMEs who have not yet recovered from the first wave.

The supply chain was not affected so badly

Aggarwal said that there was a meeting of ASSOCHAM and other industry boards with the Governor of Reserve Bank of India (RBI) in the past, in which he gave some suggestions specifically for MSMEs. During the epidemic last year, the Reserve Bank had already taken some steps to anticipate the conditions, which helped to save businesses and industries on a large scale. This exercise should continue even further.

Aggarwal said that the situation created after the second wave of the COVID-19 epidemic is somewhat different from the first wave. Last time everything was suddenly stopped in lockdown. But this time the ‘Micro Containment’ strategy has been adopted. This time, gradually a small lockdown has been started everywhere, which has created even more uncertainty. But the positive aspect is that this time everything is not locked together, so the supply chain has not had such a bad effect.

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Bhagyashree Soni
Bhagyashree Soni is a software engineer with soft writing skills. She is a degree holder from the International School of Entrepreneurial Leadership. She has been a state-level badminton champion and chess player. A woman with a forthright attitude enjoys her writing passion as her chosen career. Writing in the context of feminism, social-cause and entreprenurship is her forte.
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