10000 MSMEs shut down between 2019 and 2022

26 Jul 2022 , 01:54 PM

According to a parliamentary response dated July 25, about 10,000 micro, small, and medium-sized businesses (MSMEs) closed their doors between 2019 and 2022.

Bhanu Pratap Singh Verma, the minister of state for MSMEs, responded in writing to a question from a legislator in the upper chamber of parliament that 9,667 MSMEs have closed since 2019 based on information from the former Udyog Aadhaar and Udyam.

The minister stated that this contrasts with 400 MSMEs that shut down between 2016 and 2019. India's pandemic-affected economy is rebounding, but the informal sector is lagging behind because it has experienced severe financial strain and has lost market share to bigger companies.

After the epidemic struck, the Center revealed a number of initiatives, including an emergency credit line guarantee for companies, especially MSMEs. MSMEs still have problems with escalating costs, liquidity, labor, and the availability of raw materials. MSMEs employ millions of people nationwide.

Minister Verma stated in answer to a different query that the closure of 6,222 MSMEs during the financial year 2021—2022 resulted in the loss of 42,662 jobs. Up to July 20 of the current fiscal year, the closure of 2,870 MSMEs has resulted in a loss of 19,862 employment.