As you would agree, the contribution by MSMEs and SMEs in India’s Economy is substantial. It is fact that, India’s growth considerably relies on M...SME sector which significantly contribute to the GDP and also generate the employment in India. In view of its significance, Government is providing adequate support to this sector. However, MSMEs suffered severely following the lockdown as Industries remained closed for several months. The current economic situation is not conducive to MSMEs as there is restricted liquidity in the system. There are a few issues with which the MSME sector is still struggling.
It is unfortunate that some businesses are also finding it difficult to avail financial support from banks and other financial institutions as a result of a strict collateral protocol or belief that MSMEs lack the required repayment capacity. There is an issue of proper information source as most of MSMEs keep doing follow-up with various government agencies to resolve problems. Many small and medium scale businesses fail to reap the benefits of the latest technological developments in their sector due to a lack of expertise and awareness.
Hence MSMEs need to be apprised of the developments that are significant for the growth of their businesses.

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