73% SMEs didn’t register any profits in FY’21

A recent survey by Consortium of Indian Associations has found that SMEs in a majority of the sectors such as retail, travel and hospitality, aviation, automobile, real estate, etc., were marred during the first wave of the pandemic last year and the second wave this year. It added that 73% of Indian small and medium enterprises (SMEs) couldn’t make a profit during the last financial year (FY21). Only 13% of them managed to brake even amid the pandemic’s impact.

An alarming 82% respondents felt that the central and state governments weren’t looking after their interests. Further, 42% of them were indecisive about retention of employees and 59% reduced their staff or sacked them in comparison to the pre-Covid period. 88% of the respondents said that they were yet to avail any of the stimulus packages introduced by the government amid Covid.

“Last year, the government performed surgery on MSMEs without any sedation. This time there should be sedation of moratorium, capital support to MSMEs who have lost revenue, postponing all payment collection like GST, PF, ESI, etc., by six months so that whatever money MSMEs have can be used for this emergency situation,” K.E. Raghunathan, Convenor, CIA and former National President, All India Manufacturers’ Organization commented.