Paper Details

MSME sector in India is second largest employment generator after agriculture, and acts as a breeding platform for entrepreneurs and innovators with considerable support in strengthening business economy. Being a highly unorganized sector consisting of large number of micro sized , is highly prone to economic crisis. The announcement of country wide lockdown dragged MSME owners, employers and external stakeholders in unexpected times, where no one had experience to handle this kind of situation. Extended lockdown had negative impact on supply of finished goods, procurement of raw material and availability of employees to work in production and supply processes. This paper shows how MSMEs suffered an acute cash crush, large scale job loss and shutdown of businesses and what measures Government has taken since the outbreak of Covid-19.The study aims to make an assessment of COVID-19 on Indian economy by analyzing its impact on growth, manufacturing, trade and micro, small and medium enterprises (MSME) sector, and highlights key policy measures to control the possible fallout in the economy.

COVID-19, Lockdown, Financial Crisis, Employment.