MSMEs showed more resilience during 2nd wave: study

‘Business declined only 11% in 2021 compared with almost half in 2020’

August 04, 2021 08:18 pm | Updated 08:18 pm IST - Bengaluru

India's medium, small and micro enterprises (MSMEs) have shown better resilience during the second wave of COVID-19 as their businesses, on an average, declined by only 11% compared with almost half (46%) after the national lockdown in 2020, as per a study.

A 2021 mid-year COVID-impact analysis, released by fintech start-up Khatabook on Wednesday, however, said the MSME segment was yet to recover to the pre-COVID levels of March 2020.

According to the analysis, tier 1 and 2 cities experienced slightly less business impact of the pandemic during the second wave compared with metros, tier 3 and tier 4 towns. Also, large businesses were more sensitive towards the pandemic-induced restrictions than medium and small businesses, it found.

MSME systems in Uttarakhand, Kerala, and Madhya Pradesh were the most impacted in 2021 while that in Jharkhand, Telangana, and Bihar were least impacted. Between January 2020 and June 2021, Delhi and Uttar Pradesh, Haryana and Delhi and Andhra Pradesh and Telangana exchanged the highest interstate trade with each other.

The COVID-impact analysis was done based on the cash flow activities of the MSME ecosystem represented by the Khatabook app.

Ravish Naresh, Co-founder and CEO, Khatabook said "The MSME segment is showcasing a definite learning curve with their usage behavior of digital platforms, indicating increased proficiency with digital solutions.''

ends

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.