: MSMEs can take three months to two years to recover; Rs 6 lakh cr payment pending to MSMEs: Expert #FinanceIndia #StockMarketNEWS MSMEs can take three months to two years to recover; Rs 6 lakh cr payment

@StockMarketNEWS Wed 29 Apr, 2020

Posted in: #FinanceIndia #StockMarketNEWS

MSMEs can take three months to two years to recover; Rs 6 lakh cr payment pending to MSMEs: Expert #FinanceIndia #StockMarketNEWS
MSMEs can take three months to two years to recover; Rs 6 lakh cr payment pending to MSMEs: Expert New Delhi, Apr 28 (KNN) Micro Small and Medium Enterprises (MSMEs) have been passing through a hard time due an extended nationwide lockdown which has kept units shut for more than a month.

As per MSME Minister Nitin Gadkari, the government and big business together owe these small firms nearly Rs six lakh crore forcing them to struggle from shortage of working capital, labour and livelihoods.

However, post COVID-19 pandemic, how much time these units will take to jump back on the track? To get an answer of this question, KNN India spoke to Yogendra Kapoor, an Economist as well as Tax Expert who were of the view that depending upon the units, recovery in cash flows can take three months to two years.

Its sector specific in SME/MSME and depending upon sector, recovery in cash flows can take from three months to Two years, he said.

He also felt that if crisis continue to remain post June, then business will be closed down.

If corona lockdowns remain beyond June then am sorry to say that lot of sector specific small businesses may close down in next 3-9 months time, he added.

Micro, small and medium enterprises (MSMEs) form the backbone of India’s businesses and its famed entrepreneurial spirit. This sector employs nearly 11 crore Indians in over six crore enterprises; it accounts for a third of India’s GDP and more than a third of our exports.

However, this present pandemic has hit the sector hard making it cry for a penny.

Keeping in view the need to uplift the suffering MSME sector post-lockdown, the government has appointed AK Sharma as Secretary of MSME in a large-scale reshuffle in the Central administration.