A Study on Government Measures for MSMEs under Aatmanirbhar Bharat Abhiyan (ABA)

The Central Government of India has announced that the MSME sector is to be brought within the the purview of the Atmanirbhar Bharat Abhiyan (ABA). Atmanirbhar Bharat Abhiyan (ABA) intends to address the needs of the MSME sector and paves a path for long-term sustainability and profitability of MSMEs. MSMEsserve asthe foundation of Indian economy. There are around 63.5 million MSME units in India. These MSME units contribute around 6.11 per cent of the manufacturing GDP, 24.69 per cent of the GDP from service activities, and 34 per cent of India's manufacturing output. They provide employment to around 120 million people and contribute around 45 per cent of the overall exports from India. The sector has steadily maintained a growth rate of over 10 per cent. However, COVID19 has severely affected this sector, threatening their very survival. The lockdown, which still continues partly, to the nation to combat the Covid-19 has adversely affected millions of small businesses. It has halted or reduced production, distribution, and consumption. As a result, MSMEs are facing a severe liquidity crisis; combined with their inability to retain migrant workers, the situation has created a domino effect across the sector. However, with a gradual relaxation of lockdown restrictions, MSMEs can take a sigh of relief. Still, there are many challenges in the path of recovery of MSMEs. These challenges can be faced with the combined effort from the Government, Technology Companies, and the SMBs themselves. The Government of India has taken various initiatives for revival of MSMEs. This paper tries to present the role of MSMEs in Indian Economy and to study the special measures undertaken for revival of MSMEs amid Covid-19 under Aatmanirbhar Bharat Abhiyan (ABA).