COVID-19 AND INDIAN ECONOMY: IMPACT ON MICRO, SMALL AND MEDIUM ENTERPRISES (MSME) SECTOR

ABSTRACT

The role of MSMEs as a power source of economic growth of the country is highly acknowledged. It plays a notable role in ensuring equitable development in the country. However, most of the small and medium industries which were considered as the backbone of Indian economy are striving hard to keep their business functioning in this lackluster time of crisis. The outbreak of COVID-19 and the subsequent country-wide lockdown made the MSME sector as the worst affected sector. The pandemic-triggered uncertainty around the future flow of income and the declining purchasing power among consumers have endangered the survival of MSMEs. The article mainly focuses on exploring the ramifications of country-wide lockdown due to global pandemic upon the small and medium scale industries of the country. Also, the study tries to connect the listed stock price trends of MSMEs during covid outbreak for analysing the performance of the sector for the period. The analysis shows that the worst economic sentiments are reflected in the price movements of listed small and medium enterprises. It also explores how the stimulus packages declared by central government can revive the sector. The study comes up with a couple of suggestions, such as digitalization, to safeguard and galvanize the sector during this challenging time. © 2022 by Nova Science Publishers, Inc.