Lockdown and Ensuing Economic Crisis Will Destroy MSMEs: Experts

Entrepreneurs speculate that the lockdown which will lead to an economic crisis which will destroy MSMEs.

Entrepreneurs ask government for financial help

(Photo: PTI)

Video Editor: Ashutosh Bharadwaj

The nationwide lockdown imposed due to the coronavirus outbreak has severely impacted several areas, one of them being the nation’s economy and thereby MSMEs which have been undergoing severe losses during the lockdown.

Experts and entrepreneurs speculate that the lockdown which will end in an economic crisis in the country will destroy whatever is left of the MSMEs.

Sameer Singh, the General Secretary of Laghu Udyog Bharti says that due to the lockdown and lack of money coming in, “paying electricity bills, security charges and bank interest of factories have become a problem.”

“MSME and business class are on the verge of destruction.”

Ashok Bhalotia, President, Singhbhum Chamber of Commerce and Industries

Entrepreneurs request the government to help them by providing financial assistance. They have also suggested that the government should waive bank loans and pay at least 50 percent salaries of the workers, adding that the government should ban imports and use products made by SMEs.