Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
4. Examine the impact of Covid on MSMEs. Suggest ways to revive the MSME sector. (250 words)
Reference: Deccan Herald
Why the question:
The article explains in what way the covid-19 has impacted the MSMEs.
Key Demand of the question:
Examine the impact of Covid on MSMEs. Suggest ways to revive the MSME sector.
Directive:
Examine – When asked to ‘Examine’, we must look into the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.
Structure of the answer:
Introduction:
Two consecutive COVID-19 pandemic waves have ravaged all the sectors, but it is the micro small and medium enterprises (MSMEs) that have borne the brunt of the coronavirus.
Body:
The answer body must have the following aspects covered:
One can first define what MSMEs are.
Then explain how Covid-19 impacted the MSME sector? – Disproportionate Impact, Reduced operating Capacity, Supply/Demand Fluctuations, Credit Vulnerabilities etc.
Discuss the actions taken by the government to protect MSMEs.
Suggest steps needed for Resilient MSME Sector.
Conclusion:
Conclude that in a way, covid-19 is a watershed moment that may lend itself to accelerated business transition for India’s vast MSME sector. While this is no silver lining, the reality of the situation has forced businesses to look at any means necessary to adapt to grow.
