Ease of Doing Business for MSMEs: MSME Secretary BB Swain has referred to as for evaluating the extent of harm due to the Covid pandemic on MSMEs. Swain was speaking at the BRICS MSME Roundtable hosted by the Ministry of MSME not too long ago focusing on the group’s vision towards a post-Covid roadmap for ‘the growth accelerating sector’ — MSME. Swain also referred to as for evaluating the Covid response policies or programmes of the government for safeguarding MSMEs. The concept for BRIC – the financial bloc of nations which includes Brazil, Russia, India, and China — was conceived by Goldman Sachs as component of an financial modeling workout to forecast worldwide financial trends more than the next half century, according to the Ministry of External Affairs. The acronym BRIC was initial applied in 2001 by Goldman Sachs. South Africa had joined the alliance in December 2010.
MSMEs across most of the sectors took a extreme hit due to lockdown-induced restrictions in company operations and labour movement. However, there has been no formal information with the government on the quantity of units impacted or shut. Former MSME Minister Nitin Gadkari earlier this year in a written reply to a query in the Rajya Sabha had reasoned that considering the fact that “MSMEs are there in both formal and informal sector, data regarding temporary or permanent closure of the units are not maintained by the Government of India in Ministry of Micro, Small and Medium Enterprises (MSME).”
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However, the minister had mentioned the figures of the actual GDP in India in the course of the initial quarter of 2020-21 indicated that financial activity contracted due to the strict lockdown measures imposed by the Government and this contraction also had an effect on the MSME sector. According to the MSME Ministry, Khadi and Village Industries Commission (KVIC) had undertaken a study not too long ago to assess the effect of the pandemic on the micro-units set up below the Prime Minister’s Employment Generation Programme (PMEGP). 88 per cent of the PMEGP beneficiaries reported that they had been negatively impacted whilst the remaining 12 per cent had been benefitted due to Covid.
Last year September as effectively, former MSME MoS Pratap Chandra Sarangi in the Rajya Sabha had mentioned that “no such record is available” for the quantity of MSME units shut down in the course of the March-August 2020 period of the pandemic. In truth, there was no information with the government on the quantity of MSMEs closed down from FY15 to FY20, according to Chandra. Likewise, in the very same month, the Commerce Ministry had informed that no information on the quantity of startups that had been shut operations due to Covid and these which managed to continue was maintained by the Department for Promotion of Industry and Internal Trade.