Why India’s small enterprises need a Covid-19 rescue act
They didn’t have bargaining power or credit. Now, they don’t have business. India’s MSMEs will need some urgent relief if they are to survive.
Imagine receiving your salary with a lag of six months. Month after month. In time, you will tailor your savings and spending cycle suitably. Now, imagine waking up one day to learn that six months will now become nine months and your employer will pay you only partially. That’s the predicament facing many of the 63.4 million micro, small and medium enterprises (MSMEs) in the non-agricultural space, 99% of which have made a capital investment of less than ₹25 lakh in the business.