The MSME sector holds the key to an Indian economic recovery
Fiscal support for MSMEs and a level playing field vis-a-vis big businesses would help our economy
Given the uncertainty of the pandemic and India’s economic recovery, all eyes are on estimates of growth in the second quarter of this fiscal year, to be released later this month. It is quite clear from the available data that the economy may have recovered from the trough of April and May, when the lockdown was in force, but is yet to show signs of a sustained recovery on an annual basis. Among the many indicators, perhaps the most significant is the decline in number of establishments registered with the Employees’ Provident Fund Organisation by more than 30,800 in October, compared to September. As reported by Mint, its enrolled number of workers also fell, by more than 1.8 million, during the same period. This was the first fall since May when the country was under lockdown.