67% MSMEs were temporarily closed, 50% saw 25% revenue decline in FY21: SIDBI survey

New Delhi, Feb 7 (KNN) During FY21, 67 per cent MSMEs were temporarily shut for up to three-months due to the Covid-19 pandemic, a SIDBI survey said. 

The findings of the survey was shared by the MSME Minister Narayan Rane in reply to a question in Lok Sabha on Thursday. 

“Over 50 per cent of the respondent MSMEs witnessed a decline of more than 25 per cent in their revenues during FY21. Moreover, around 66 per cent units had reported a decline in profitability on account of stable fixed costs and a decline in revenue. In view of ECLGS, around 65 per cent MSMEs surveyed had availed the credit scheme and around 36 per cent had also availed loans under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme,” he informed the lower house. 

The Ministry of MSME had allocated the survey to SIDBI in September 2021 to gauge the impact of covid on MSMEs are the losses the sector has suffered. 

Final report was submitted on 27th January, 2022 to the Ministry wherein it chose a random sample pool of 1,029 MSMEs across 20 States and two union territories.

Although the plight of MSMEs were evident as they are worse hit sector, in November 2021, MSME Minister Rane told Parliament that there is no official record pertaining to job loss in MSME sector because they fall under both formal and informal sector. (KNN Bureau)