CHENNAI: Indian Institute of Technology-Madras (IIT-M) has collaborated with industry bodies to understand the impact of the coronavirus crisis on Micro, Small and Medium Enterprises (MSME) in Tamil Nadu.
With the Centre announcing a stimulus package for the sector, the IIT-M project would be a time-bound study to understand the resilience of MSMEs in the state.
Tamil Nadu has one of the largest numbers of MSMEs in India, with more than 6.89 lakh registered enterprises. This is more than 15 per cent of the total MSMEs in India. Given the significance of MSMEs in the state, the disruption caused by the Covid-19 is a major concern.
Based on the outcome of this study, the researchers plan to analyse the adaptation and coping strategies to overcome the shock due to the pandemic, which could help in quick recovery of such firms.
Subash Sasidharan, Associate Professor of Economics at IIT-M, said, “MSME sector is the largest employer in the country and their survival is at stake due to this pandemic. Therefore, there is an urgent need to undertake research to analyse the challenges of these enterprises in detail.”