“…the measures adopted were more of loan offering and long-term measures instead of improving the cash flow to generate demand as immediate relief. In the process of economic recovery post-first wave of the pandemic, the second wave even more vigorously ripped the economy, particularly the MSME sector. The committee, therefore, recommends that the government should immediately come out with a larger economic package aimed at bolstering demand, investment, exports and employment generation to help the economy, including MSMEs, to recover from the pandemic fallout,” the standing committee on industry said in a report.
Besides, it has suggested that the ministry of micro small and medium enterprises (MSMEs) take pre-emptive measures to ensure that small businesses are protected from the adverse impact of a possible third wave.
The panel, headed by Telangana Rashtra Samithi’s K Keshava Rao, has also asked the ministry to conduct a survey to ascertain the actual impact of the pandemic, and the second wave on MSMEs, as the ministry had so far failed to undertake an intensive study, the report said.