IIT-Madras, industry bodies to study COVID-19 impact on MSMEs

The Indian Institute of Technology-Madras, in association with industry bodies, would undertake a study on the impact of coronavirus in the micro, small and medium enterprises in Tamil Nadu.

The state accounts for 6.89 lakh registered enterprises comprising 15 per cent of the total MSME sector present in the country. Considering this, the disruption caused by the COVID-19 is a major concern, a press release said.

The study would suggest immediate and long-term policy initiatives to the government for the sector. It is expected to be completed in three-four weeks, the release said. The study follows the stimulus packages announced by the Finance Ministry to revive the sector. IIT-M would collaborate with ConsoTree, engaged in research and industry development, Tamil Nadu Small and Tiny Industries Association and district-level bodies, including the Coimbatore District Small Industries Association.

"The survival of these enterprises are at stake due to the pandemic. There is an urgent need to undertake research to analyse the challenges of the enterprises in detail," the IIT's associate professor of economics Subash Sasidharan was quoted as saying in the release. The phases of lockdown announced by the government witnessed a revenue shortfall of more than 60 per cent for the sector, creating an unprecedented crisis to the industry.

The MSME sector faced a severe shortage of working capital, including delay in payments, shortage of labour and disruption in the supply chain, the release said.