Business simplicity for MSMEs Post-Cowed Recovery: For most sectors, micro, small and medium enterprises (MSMEs) are preparing their own pace to return to normal inflation and fuel inflation challenges. Etc. Although it is unfortunate that this recovery may slow down before the third wave hits again, “In an interview, Vinnet Agarwal, Director General of the Indian Transport Corporation, said the steps taken by the government are important to restore these companies. Financial Express Online. Cited verses below:
How do you think the SME sector has recovered so far after the first and second waves of Covide?
In both waves, the SME sector was hit hard. The worst affected are the hospitality sector. In addition, rising commodity prices from steel to cement, copper and even oil have created some challenges for the SME sector. So with all of this, the steps taken by the government so far have been important to get these organizations back on track. Therefore, the purpose of their salvation is very important. And I think a lot of it is starting to happen, but we still have some time to fully recover. For example, working MSMEs currently have multiple commands. Credit flow has also begun. The government has created a way for SMEs to start listing their products in different portals. Therefore, some of these steps have begun to help the MSME environment.
Credit cited, but according to data from the Reserve Bank of India, total bank lending for MSEs fell negatively again in September 2021, after two months of positive YOY growth. From April to June this year, Yoi loan growth was negative.
We cannot view the data individually. We need to look at the information from different perspectives and perspectives. I don’t want to defend the information, but I look at it a little bit from a macro point of view. Clearly, April, May, and June were at the heart of the second wave. So, there was a lot of uncertainty and fear for everything that happened at that time. Last September we came out of the first storm and after that a lot of things happened. So, then, there was a huge increase in debt. I think it will reflect this year as well. The general thing you need to look at is all the key indicators in the economy – from e-accounts to electricity consumption, fuel demand, production in various major sectors, and so on. Recovery. Yes, there were and there were challenges, but basic recovery began to occur.
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However, commodity prices have skyrocketed in recent months due to the shortage of coal and rising oil prices. All of them still have a direct impact on MSMEs in post-cognitive recovery.
Well, especially for MSEs, there are challenges as all input costs increase. The only way here is if they can pass it on to their users as much as possible. So, I think that’s starting to happen and MSMEs have been able to divert some of those costs by turning a little bit into businesses. The fact that we are being saved from Covene will affect everything. Some products are low-income and some are low-income and some are high-income. Even in rental stores, there are products that make more margins than some basic products. Therefore, mitigation is taking place at its own pace.
In terms of labor issues and reports from MSMEs, a total of more than 5 million regular and informal workers lost their jobs in October. In addition, the national labor force fell from 40.66 percent in September to 40.41 percent in October. How do you see the situation in terms of job creation in the MSME sector?
The labor market is now very liquid per second. I think it’s a storm. We have seen them return to their hometowns or look for work in the country. I think we have seen MNREGA figures go up. We are seeing good interest in the formal workforce, in particular, for people in MSMEs. Most MMSEs find it challenging to find the right people because they have to constantly improve their skills. So that was the case. In general, I think, it has been very positive. And again, these would mean that you have to spend for these processes.
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The government has announced PLI plans for 13 different sectors to increase domestic production. Do you think this could have a significant impact on micro-manufacturers as most MMSEs are micro-units?
I think you are right. In this regard, I do not think the PLI plan works well for small enterprises. I think a little balance is needed for small units and there may be some growth opportunities for them. I think the biggest challenge is the lack of awareness and understanding of these plans, but in the end the whole ecosystem will benefit from this plan. You need to have your Level One and Level Two suppliers – a collection of suppliers around you – in order to efficiently produce and service products in terms of price and quality. Therefore, everyone has a tendency to take a very strong deception effect from the PLI plan. It is a brilliant plan in terms of its purpose and purpose.
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