The Central government is yet to give any stimulus package to over 81,000 self-employed and Micro, Small and Medium Enterprises across India following the COVID-19 pandemic lockdown, a survey conducted by the Consortium of Indian Associations (CIA) and its 40 partner small and medium associations revealed yesterday. This accounts for 88 per cent of the business category.
Manufacturers (49 per cent), service providers (15 per cent), self-employed (14 per cent), consultants, traders, food and hospitality, and others fall under the category.
]Representatives of various associations, in a virtual press conference, revealed that 80% of these businesses feel insecure about the future while more than 40 million self-employed persons have been crippled due to Covid induced lockdown across the country, The Hindu reported.
Unable to fulfil the criteria for availing benefits or lack of eligibility, about 88 per cent of the respondents said they were deprived of the stimulus package.
Survey says 73% Businesses Not Made Profits
The survey also highlighted that 73 per cent of small and medium businesses (SMBs) have not made any profit during the last financial year and 82% felt that the Central and state governments weren't looking after their interests.
Releasing the report, KE Raghunathan, Convenor of CIA and former national president of All India Manufacturers' Organisation, said, "Over the past year, CIA has provided vital suggestions and modifications required on several initiatives taken by the central and state governments for the benefit of MSMEs. As a result, we realised that a data-backed survey would help consolidate the feedback from this sector to bring out the pain points and provide solutions and a way forward to revive the sector," reported The Hindu.
The report recommends the adoption of a three-pronged approach and amendment to the Micro, Small and Medium Enterprises Development Act of 2006 to strengthen the state facilitation councils.