MSMEs will incur losses due to coronavirus outbreak, says Expert

New Delhi, Mar 17 (KNN) Apart from claiming several lives, the Coronavirus has also done damages to industries irrespective of large corporates or Micro Small and Medium Enterprises (MSMEs) across the globe.

COVID-19 has infected hundreds since the outbreak began in Wuhan, China, in December last year and has hit Indian MSMEs badly, who are already facing the trouble amid economic slowdown.

According to All India Manufacturer’s Organisation (AIMO) study, India homes to over 75 million MSMEs and most of these firms will face closure if the lockdown, due to Covid-19 stretch further if goes beyond four weeks while a staggering 43 per cent will shut shop if the panic extends beyond eight weeks.

''I can't predict, and can't vouch for the same because it is difficult to judge such figure but definitely MSMEs will incur losses,'' VK Agrawal, a Lucknow-based businessman told KNN India.

He further said that it's very complex as because it's not clear in the study that what businesses are going to close.

''There are Micro, Small, and medium industries, so what kind of businesses will be affected by the COVID-19 that needs an analysis,'' he added.

How government is taking up the issue will matter a lot said Agarwal adding that,'' government is very panic compare to common people.''

''They (Government) are closing all social activities and gatherings, definitely it's going to impact economy,'' he added.

Germany and US have already sanctioned large amount for their industries amid Corona outbreak this shows that it's going to last long, said Agrawal.

Reportedly, AIMO on Monday made an urgent plea to the Centre to look into the needs of the MSME sector in the context of the pandemic.

“More livelihoods would be lost than lives due to COVID-19. Based on ground impact information gathered from various sources, AIMO believes that a large number of MSMEs in the country will vanish if the panic continued beyond a month,” said K E Raghunathan, past president, AIMO.

---------------------

---------------------