MSMEs Struggle To Stay Alive

Revival in global trade and export orders does bring hope for India’s Micro, Small and Medium Enterprises (MSMEs) that account for 48 per cent of the country’s exports and happen to be the largest employers after agriculture. However, anxiety looms large on their ability to carry on with severe liquidity crunch, as many overseas buyers are delaying payment and some have filed for bankruptcy. According to the National Sample Survey 2015-16, there are 6.34 crore MSMEs—6.30 crore micro, 3.31 lakh small and 5,000 medium enterprises—employing 11.10 crore people. The government has been taking various incentives and measures to promote the sector, considered the economy’s backbone. However, unless addressed, the current problem holds the risk of closure of many units, leading to huge job losses—something India can barely afford. Animesh Saxena, President of...