Project Sampark Report
Impact of COVID on Micro Businesses and the Road to Resilience

ARTH Community Engagement Events

The Micro Small and Medium Enterprise (or MSME) sector is the country’s second-largest employment generator and accounts for nearly one-third of the country’s GDP. As per MSME Ministry’s annual report 2020-21, there are around 6.33 crore MSMEs in India out of which 6.30 crore (over 99 per cent) are micro-enterprises.
With 94% of the micro-enterprises in India being informal, the sector is more likely to bear the brunt of the pandemic. According to an RBI survey, the MSME segment has been among the five sectors adversely affected by the pandemic.
The first wave of COVID and the national lockdown implemented to contain it had given an unexpected blow to the MSME sector. The MSMEs had not recovered completely from the first wave when the emergence of the second wave cast another blow to the already fragile sector.