STILL SEEKING SUCCOUR

Most hit by the pandemic, MSMEs need continued help to tackle the present business uncertainties and low demand

- Kiran D. Tare

Narayan Rane

Minister of Micro, Small and Medium Enterprises

TWO YEARS OF THE pandemic perhaps exacted their heaviest toll on MSMEs (micro, small and medium scale enterprises), with several units reportedly shutting down, throwing millions out of jobs. India's 63.5 million MSMEs account for 45 per cent of its manufacturing output, 40 per cent of exports and employ about 120 million. A majority of these units are still struggling due to high input costs and low demand. The Centre had as part of its May 2020 relief package announced an Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs. It saw disbursals of over Rs 3 lakh crore till December 2021. But ECLGS was meant only for MSMEs that had already taken a loan, leaving others stranded.