Main Article Content



Coronavirus (COVID-19) outbreak has halted the shivering progress of the Indian economy. In recent times the Micro, small and medium-sized enterprises (MSMEs) sector is on the verge of becoming lame due to the COVID-19 outbreak. MSMEs primarily drive the socio-economic growth in our country. Still, because they typically have inadequate financial and management resources compared to big enterprises and are not prepared to deal with problems that are likely to be more severe than anticipated, they are worst hit by the COVID-19 outbreak. So, this paper aims to obtain the perception of selected MSMEs respondents to examine the effect of the COVID-19 pandemic crisis on MSMEs and provide policy recommendations to the concerned policymakers to help MSMEs manage the situation. A strategically constructed questionnaire was designed in the form of an online survey to obtain respondents' opinions. The descriptive statistical analysis and "Chi-square non-parametric test" were carried out to analyze the gathered data. The study found that most of the MSMEs were either fully or partially in operation during the COVID-19 lockdown due to the enterprises belonging to essential services, employees working from home, etc. The increased difficulty in financing and reduction of orders were the most relevant issues faced by MSMEs. The study also found out that due to Covid-19 lockdown, MSMEs not belonging to essential services had to lay off their employees to the extent that led to unemployment. Finally, to alleviate the negative impact of the COVID-19 outbreak on MSMEs, the study mentions that the most relevant relief measure announced by the government was "government to clean all receivables due to MSMEs in next 45 days".

COVID-19 outbreak, Government relief measures, lockdown, micro small and medium-sized enterprises (MSMEs) in India

Article Details

How to Cite
GANGWANI, M., & ADHANA, M. (2021). HAS COVID-19 CLIPPED THE WINGS OF THE HIGH FLYING MICRO, SMALL, AND MEDIUM- SIZED ENTERPRISES (MSMEs) SECTOR? AN OPINION SURVEY. Asian Journal of Advances in Research, 11(4), 1-12. Retrieved from http://mbimph.com/index.php/AJOAIR/article/view/2541
Original Research Article


OECD. Coronavirus (COVID-19): SME policy responses; 2020.

Bartik AW, Bertrand M, Cullen Z, Glaeser EL, Luca M, Stanton C. The impact of COVID-19 on small business outcomes and expectations. Proceedings of the National Academy of Sciences. 2020;117(30):17656-17666.

Prasad S, Su H, Altay N, Tata J. Building disaster-resilient micro enterprises in the developing world. Disasters. 2014;39(3):447-466. Available:https://doi.org/10.1111/disa.12117

Khan N, Fahad S, Naushad M, Faisal S. Critical review of COVID- 2019 in the world. SSRN Electronic Journal; 2020. Available:https://doi.org/10.2139/ssrn.3583925

World Bank East Asia and Pacific economic update, April (2020): East Asia and Pacific in the time of COVID-19; 2020. Available:https://doi.org/10.1596/978-1-4648-1565-2.

Lal BS, Sachdeva P, Simran, Mittal T. Impact of Covid-19 on micro small and medium enterprises (MSMEs): An overview. International Journal of Multidisciplinary Research and Development; 2020. Available:https://doi.org/10.22271/ijmrd.2020.v7.i12.02.

Shah SAH. Strategy for mineral sector development in Pakistan. Ministry of Planning. 2018;1-24.

Bello W. The Asian financial crisis: Causes, dynamics, prospects. Journal of the Asia Pacific Economy. 1999;4(1):33-55. Available:https://doi.org/10.1080/13547869908724669.

Pearson R, Sweetman C. 1. Introduction - Gender and the economic crisis. Gender and the Economic Crisis. 2011;1-14. Available:https://doi.org/10.3362/9781780440200.001.

Tambunan TT. The Indonesian experience with two big economic crises. Modern Economy. 2010;01(03):156-167. Available:https://doi.org/10.4236/me.2010.13018.

Tambunan TTH. The Impact of the 2008-2009 Global Economic Crisis on A Developing Country’s Economy: Studies from Indonesia. Journal of Business and Economics. 2011; 2(3):175-197.

Ghoshal M. Trade performance of India & China in MSME (Micro, Small & Medium Enterprises) Sector: A Case Study. Asia Pacific Journal of Business Review. 2018;2(2):45-59.

Shafi M, Liu J, Ren W. Impact of COVID-19 pandemic on micro, small, and medium-sized enterprises operating in Pakistan. Research in Globalization. 2020;2:100018. Available:https://doi.org/10.1016/j.resglo.2020.100018.

Singh A. What about India's MSME sector: COVID-19 pandemic and Indian MSME sector outlook. SSRN Electronic Journal; 2020. Available:https://doi.org/10.2139/ssrn.3696778

Gawas N. Impact of COVID-19 on the stressed MSMEs sector in Goa. SSRN Electronic Journal; 2020. Available:https://doi.org/10.2139/ssrn.3646066

Roy A, Bhusan B. Impact of covid-19 on goods and services tax (GST) with respect to micro small and medium enterprises (MSME) Sector. PalArch's Journal of Archaeology of Egypt/Egyptology. 2020;17(9):4792-4799.

Roy A, Patnaik BCM, Satpathy I. Impact of Covid-19 crisis on Indian MSME sector: A study on remedial measures. Eurasian Chemical Communications. 2020;2(9):991-1000.

Sahoo P, Ashwani. COVID-19 and Indian economy: Impact on growth, manufacturing, trade and MSME sector. Global Business Review. 2020;21(5):1159-1183.

Kadam SA, Pandey D. Post COVID-19 Opportunities and Challenges for Micro Small Medium Enterprises (MSMEs) Development in India. Asian Journal of Advances in Research. 2020;1-4.

Shinozaki S, Rao LN. COVID-19 Impact on Micro, Small, and Medium-Sized Enterprises under the Lockdown: Evidence from a Rapid Survey in the Philippines; 2021.

Koloma Y. COVID‐19, financing and sales decline of informal sector MSMEs in Senegal. African Development Review. 2021; 33(S1). Available:https://doi.org/10.1111/1467-8268.12532.

Nitin Gadkari. Manufacturing moving out of China; 2020. Available:https://thefinancialpandora.com/manufacturing-moving-out-of-china/