IIT Madras, Industry Bodies To Study Impact Of COVID-19 On Tamil Nadu MSMEs
Indian Institute of Technology (IIT) Madras is collaborating with industry bodies to understand the impact of COVID-19 crisis on Micro, Small and Medium Enterprises (MSMEs) in Tamil Nadu.
Indian Institute of Technology (IIT) Madras is collaborating with industry bodies to understand the impact of COVID-19 crisis on Micro, Small and Medium Enterprises (MSMEs) in Tamil Nadu. The study is expected to be completed within three to four weeks. The study is significant as the Central government yesterday announced that it will provide collateral-free loans worth $40 billion to boost liquidity for small businesses and help the economy tide over the coronavirus outbreak.
In this context of the stimulus package announced by Union Finance Minister Nirmala Sitharaman for the MSME sector, this exercise will be a time-bound study for understanding the resilience of the MSMEs in Tamil Nadu, a statement from the Institute said.
The loans will benefit up to 45 crore small businesses, the finance minister said in New Delhi on Wednesday. The program will be open until October 31.
Tamil Nadu accounts for one of the largest number of MSMEs in the country with more than 6.89 lakh registered enterprises. This, in turn, accounts for more than 15 per cent of the total MSMEs in India. Given the significance of MSMEs in Tamil Nadu, the disruption caused by the COVID-19 is a major concern.
The study is being led by IIT Madras Department of Humanities and Social Sciences Faculty, Dr Subash Sasidharan, Associate Professor of Economics, and Dr Santosh Kumar Sahu, Assistant Professor of Economics.
Based on the outcome of this study, the researchers plan to analyse the adaptation and coping strategies to overcome the shock due to the pandemic, which could help in quick recovery of the MSMEs in Tamil Nadu, the statement said.
"MSME sector is the largest employer in the country. The survival of these enterprises are at stake due to this pandemic. Therefore, there is an urgent need to undertake research to analyse the challenges of these enterprises in detail," Dr nSasidhara said while speaking about the focus of this study.
The Institute is partnering with ConsoTree, a Research and Industry Development; and industry bodies - Tamil Nadu Small and Tiny Industries Association (TANSTIA), an apex body of MSMEs, and district level bodies including Coimbatore District Small Industries Association (CODITSSIA) and Madurai District Tiny and Small Scale Industries Association (MADITSSIA).
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