Bhoomika Singh
Approximately 10,000 micro, small, and medium-sized businesses (MSMEs) closed their business between 2019 and 2022, as per the data from minister of states for MSMEs in a parliamentary response on July 25th, 2022.
According to information from the former Udyog Aadhaar and Udyam, Bhanu Pratap Singh Verma informed a legislator in the upper chamber of parliament that 9,667 MSMEs have closed since 2019.
He added that this is in contrast to the 400 MSMEs that closed between 2016 and 2019. The pandemic-affected Indian economy is recovering, but the informal sector is stumbling as a result of severe financial strain and loss of market share to larger companies.
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Despite numerous efforts by the central government, including an emergency credit line guarantee for companies, particularly MSMEs, for recovery. Despite employing millions of people, MSMEs face challenges such as rising inflation, liquidity, labour, and raw material availability.
In response to another question, Verma stated that the closure of 6,222 MSMEs during the fiscal year 2021-2022 resulted in the loss of 42,662 jobs. Up to July 20 of this fiscal year, the closure of 2,870 MSMEs resulted in the loss of 19,862 jobs.
