NEW DELHI: The Ministry of Micro, Small and Medium Enterprises informed that during an online survey of 5,774 MSMEs in August 2020, it was found that 91 per cent of MSMEs were functional and 9 per cent closed down due to COVID-19 impact.
"National Small Industries Corporation Ltd conducted an online survey in Aug 2020, covering around 5,774 MSMEs in 32 states/UTs to assess impact of Covid on MSMEs. It was found that 91 per cent MSMEs were functional and 9 per cent closed down due to the impact," Union Minister of Micro, Small and Medium Enterprises (MSMEs) Narayan Rane told the Lok Sabha. He was responding to a question by Congress leader Rahul Gandhi.
Asked about the alarming increase in number of suicides by MSME business owners, Rane said that as per National Crime Records Bureau, a total of 9,052 business owners committed suicides in 2019, while the number increased to 11,716 in 2020.
MSMEs contribute 29 per cent to the country's GDP. The sector is among the worst hit by the pandemic. The Centre has extended some support to the sector in terms of lending.