Lok Sabha Question No. 490 (UNSTARRED), answered on 2021-07-22
Subject: Closure of MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Rajan Baburao  Vichare

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION No. 490 TO BE ANSWERED ON 22.07.2021

## Closure of MSMEs

## 490. SHRI RAJAN VICHARE:

Will   the   Minister   of   MICRO,   SMALL   AND   MEDIUM   ENTERPRISES   be pleased to state:

- (a) the  contribution  of  Micro,  Small  and  Medium  Enterprises  (MSMEs)  in  the total  production of the  manufacturing sector  during the last  three  years, percentagewise;
- (b) whether  some  units  of  MSMEs  have  also  been  closed  down  during  the  said period and if so, the details thereof, State-wise;
- (c) the details of the number of the units closed during the said period, year-wise along with the reasons therefor; and
- (d) the details of operational MSMEs in Maharashtra during the last two years?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI  NARAYAN RANE)

- (a): As per the information received from Central Statistics Office, Ministry of Statistics  &  PI,  Share  of  MSME  Manufacturing  Gross  Value  Added  (GVA)    in  All India Manufacturing GVA at current prices (2011-12) for the years 2016-17, 2017-18 and 2018-19 was  40.4%, 40.2% and 40.1%  respectively.
- (b) & (c):     The economic activity contracted due to the strict lockdown measures imposed  by  the  Government.  This  contraction  has  also  had  impact  on  the  MSME sector.

Studies have been conducted by National Small Industries Corporation (NSIC) and  Khadi  and  Village  Industries  Commission  (KVIC)  to  assess  the  impact  of COVID-19  Pandemic  on  MSMEs  including  units  set  up  under  Prime  Minister's Employment Generation Programme (PMEGP).

- A. The  main  findings  of  the  online  study  conducted  by  NSIC  to  understand  the operational  capabilities  and  difficulties  faced  by  the  beneficiaries  of  NSIC schemes amid Covid-19 pandemic are as follows:
- i. 91% MSMEs were found to be functional.

: 2 :

- ii. Five  most  critical  problems  faced  by  MSMEs  were  identified  as  Liquidity (55% units), Fresh Orders (17% units), Labour (9% units), Logistics (12% units) and availability of Raw Material (8% units.)
- B. The findings of the study conducted by KVIC are as under:
- i. 88%  of  the  beneficiaries  of  PMEGP  scheme  reported  that  they  were negatively  affected  due  to  Covid-19  while  the  remaining  12%  stated  that they were benefitted during Covid-19 Pandemic.
- ii. Among the 88% who were affected, 57% stated that their units were shut down  for  some  time  during  this  period,  while  30%  reported  drop  in production and revenue.
- iii.  Among the 12% who had benefitted, 65% stated that their business increased as they had units in retail and health sector and around 25% stated that their units benefitted as they were dealing with essential commodities or services.
- iv.  On  the  question  of  regular  payment  of  salaries  to  the  employees,  around 46.60%  respondents  stated  that  they  had  paid  the  salaries  in  full,  42.54% reported to have partially paid and 10.86% reported to have not paid salary for some time during this period.
- v. Majority  of  the  beneficiaries  expressed  the  need  for  additional  financial support,  relaxation  of  waiver  of  interest  and  marketing  support  for  their products.
8. (d):      As per Udyog Aadhaar Portal (since inception October 2015 to June 2020), the number of Micro, Small and Medium Enterprises (MSMEs) registered in Maharashtra was 19,78,536.

On  1st  July,  2020,  after  adoption  of  new  definition  of  MSMEs,  a  new registration portal 'Udyam Registration' has been launched by M/o MSME and so far 8,17,275  classified  MSMEs  are  registered  on  the  portal  in  Maharashtra  (from 01.07.2020 to 15.07.2021).