The Covid-19 pandemic has impacted economies around the world like no other event that experts can recollect since the Great Depression.
India, too, has been hit hard. Global rating agency has slashed India’s GDP projection for FY21 to 0.8 percent. The Covid-19 pandemic has been a huge blow to India, especially since many sectors were already facing a crisis when the virus storm hit.
Some of the strongest economies around the globe are struggling to cope with the situation in the wake of an unprecedented demand shock and a shutdown of all key economic activities that drive growth. A large number of businesses are staring at unprecedented losses due to the situations prevailing around the globe and in India.
Many sectors have appealed to the government to ease some restrictions so they can at least resume business or grant some relief so they can at least pay wages to their employees. Here are 5 sectors in need of urgent help and cooperation from other sectors better position amid the crisis:
MSME Sector
The Micro, Small, and Medium Enterprises (MSMEs) are the backbone of all Indian sectors and often engaged in manufacturing and export activities.
Today, almost all MSMEs are out of action due to the lockdown, chocking all production activities at major firms across sectors. Several reports indicate how MSMEs are reeling under crisis and have no money to pay their employees.
The government has released Rs 20,000 crore relief package, divided into two funds, for helping MSMEs. Rajesh Gupta, Co-founder, and Director, BUSY Infotech, said,
“The world is going through something unprecedented. Nearly a third of the globe is in lockdown. Due to this lack of trade and shrinking sales, MSME’s are feeling the burden of loans, repayments, GST filings, etc”
“Even after getting support from the government, many of them are almost on the verge of losing their control over losses and unable to generate revenues as well and fighting for their survival. It will be very important for the government to take initiatives and announce more relief packages for MSMEs and measures.”
