The Covid-19 pandemic has left small, and medium enterprises (SMEs) teetering on the edge of existence. The over two-month lockdown has wound down economic activity, decimated demand, and delinked supply chains everywhere, hitting the over six crore SMEs the hardest.
If liquidity was always problematic for the sector, it now has to deal with pervasive loss of demand, labour shortages, and an even more risk-averse financial system. That would stretch their strained balance sheets to break point.
The government and the Reserve Bank of India have announced several measures including credit guarantees, loan moratoriums, working capital finance, and liquidity support to lenders of the sector to soften the blow. But how far these will come to the quick aid of SMEs, keep them afloat and eventually help them bounce back remains to be seen.
The ability of MSMEs to duke it out will be critical to the early revival of the economy, given that they contribute to ~30% of India’s gross domestic product and employ 11 crore people.
In this context, CRISIL invites you to a webinar where our experts will discuss:
The impact of the pandemic on the performance of SME-dominated sectors
Trend and outlook on SMEs for the current fiscal
Market voices from select/key sectors
Views of lenders as critical stakeholders
The presentation will be followed by a panel discussion with senior SME leaders and lenders, and a Q&A session.
