The outbreak of COVID 19 pandemic has drastically changed the global economic landscape. A recent report by the World Trade Organisation estimates that global merchandise trade will reduce by 13- 32% in 2020 due to COVID-19 pandemic. This trade is likely to plummet steeper in sectors with complex supply chains such as electronics, automotive, etc. This global phenomenon is going to make countries think about strengthening their local supply chains. India has already stated a vision of ‘Atmanirbhar Bharat’ or a self-reliant India which will need strengthening of the local industries and their standing on a global stageMSMEs can play a significant role in achieving this vision, however, a lot more needs to be done for MSMEs to become a growth driver for India. Three key parameters for the success of MSMEs are Financial Stability, Availability of Skilled Labour in MSME clusters, and Market Competitiveness of their products to both achieve import substitution as well as exports.
Read to know how these parameters play a major role in the MSME sector and what can be done to contribute towards the growth of this sector India.