Impact of covid-19 on msmes evidence from a primary firm survey in India

ABSTRACT

Micro, small, and medium enterprises contribute a third of India's gross domestic product and provide employment to over 110 million workers. Using a mixed methods design to ascertain the level of sectoral distress at the peak of the nationwide lockdown in May 2020, we found production falling from an average of 75% of capacity to just 13%. On an average, fi rms retained only 44% of their workforce, and 69% of fi rms reported inability to survive longer than three months. Distress measures were more severe for smaller fi rms by employment size. © 2021 Economic and Political Weekly. All rights reserved.