Businesses have been taking a hit due to Covid-19 lockdown. The supply chain has been disrupted, imports are down, and markets are bearish. The MSME segment has perhaps been the hardest hit. Challenges for the MSME sector According to a recent GOQii survey, about 26% of businesses surveyed said their sales and purchases have been impacted due to the virus outbreak. MSMEs are grappling with problems like low liquidity or cash flow and lack of workforce as the daily-wagers have gone to their villages.Businesses that are into manufacturing will also take a hit on export business as the situation remains uncertain. The services sector is also slowing down with more people opting for social isolation.How can the government help?The government has started taking some steps to keep the MSME segment afloat. The Reserve Bank of India recently introduced Long Term Repo Operations (LTRO) worth Rs 100,000 crore to help banks increase lending at cheaper interest rates. Government-run banks are also being encouraged to keep loans worth Rs 60,000 crore ready.Read also MSME losses skyrocket sharply over one quarter Proposal for relief to MSME sector on account of coronavirus In addition, Finance Minister, Nirmala Sithraman, also announced the extension of the… Read full this story
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