Surviving the Pandemic: Time to Boost the MSME Sector

MSME sector is the second largest employment creator after agriculture in the country, and provides employment to 120 million people through 36 million enterprises. It contributes around 31 per cent to the GDP and 45 per cent of the overall exports. MSMEs promote inclusive growth by providing employment opportunities in the rural areas, especially to people belonging to the weaker sections of the society. In the pandemic situation, the need for boosting this sector is critical. Government has supported this sector through relief packages and by redefining this sector. In spite of its potential, the sector faces challenges and concerns that need to be addressed from the perspective of the long term.