The stimulus package announced by the Centre for the revitalization of the pandemic-hit economy has been found to be insufficient according to a Parliamentary panel report. The report of the department-related Parliamentary Standing Committee on Industry on the impact of COVID-19 pandemic on MSME sector has noted that in the process of economic recovery post-first wave of the pandemic, the second wave has even more vigorously ripped the economy particularly the MSME (small and medium enterprises) sector.
In their submission to the committee, various MSME associations have stated that due to a sharp fall in business, most of the MSMEs faced an acute cash crunch and needed immediate liquidity to cope with the unprecedented circumstance. The Committee has recommended that the government should immediately come out with a larger economic package aimed at bolstering demand, investment, exports and employment generation to help the economy, including MSMEs to recover from the pandemic fall-out.
Expressing concern over the grim situation of small enterprises due to the COVID-19 pandemic, the committee has recommended that to ensure the survival of small enterprises, it is imperative for the government to provide them with much-needed liquidity support to keep their businesses running and generate job opportunities for the workforce.