91% MSMEs Were Found Functional Amid Covid-19 Pandemic: Gadkari

Bhubaneswar: Union Micro, Small and Medium Enterprises (MSME) Minister Nitin Gadkari informed Rajya Sabha today that 91 percent MSMEs were found to functional amid the Covid-19 pandemic.

Replying to an unstarred question, MSME Minister Nitin Gadkari told the Upper House of Parliament that the National Small Industries Corporation (NSIC) and Khadi and Village Industries Commission (KVIC) had conducted studies to assess the impact of Covid-19 pandemic on MSMEs including units set up under Prime Minister’s Employment Generation Programme (PMEGP).

The question on the assessment of the impact was put by Rajya Sabha members Bhagwat Karad and Sasmit Patra.

Informing the Rajya Sabha on the main findings of the online study conducted by NSIC, Gadkari said:

i. 91% MSMEs were found to be functional.

ii. Five most critical problems faced by MSMEs were identified as Liquidity (55% units), Fresh Orders (17% units), Labour (9% units), Logistics (12% units) and availability of Raw Materials (8% units).

Findings of the study conducted by KVIC:

i. 88% of the beneficiaries of the PMEGP scheme reported that they were negatively affected due to Covid-19 while the remaining 12% stated that they were benefitted during the Covid-19 pandemic.

ii. Among the 88% who were affected, 57% stated that their units were shut down for some time during this period while 30% reported drop in production and revenue.

iii. Among the 12% who had benefitted, 65% stated that their business increased as they had units in retail and health sectors and around 25% stated that their units benefitted as they were dealing with essential commodities or services.

iv. On the question of regular payment of salaries to the employees, around 46.60% respondents stated that they had paid the salaries in full, 42.54% reported to have partially paid and 10.86% reported to have not paid salary for some time during this period.

v. Majority of the beneficiaries expressed the need for additional financial support, relaxation of waiver of interest and marketing support for their products.