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The MSME sector holds the key to an Indian economic recovery.
Nov 20, 2020

Given the uncertainty of the pandemic and India’s economic recovery, all eyes are on estimates of growth in the second quarter of this fiscal year, to be released later this month. It is quite clear from the available data that the economy may have recovered from the trough of April and May, when the lockdown was in force, but is yet to show signs of a sustained recovery on an annual basis. Among the many indicators, perhaps the most significant is the decline in number of establishments registered with the Employees’ Provident Fund Organisation by more than 30,800 in October, compared to September. As reported by Mint, its enrolled number of workers also fell, by more than 1.8 million, during the same period. This was the first fall since May when the country was under lockdown.
These numbers needs to be taken seriously, not just as an indicator of the vulnerability of the employment situation, but also as a performance indicator of micro, small and medium enterprises (MSMEs). The MSME sector is vital for employment generation, as also for an economic recovery to sustain.

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